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Guaranteed Term Life Insurance And Supplemental Plans Give Level Security

Finding Competitive Term Life Insurance Rates with Guaranteed Acceptance

By Mike Heuer

When buying term life plans, a guaranteed term life insurance policy provides assurances that the premiums won’t rise and in many cases the policy can be renewed in necessary. Essentially the same as a level term life policy, a guaranteed term life plan is very affordable and ranks among the best values in the life insurance industry.

There are many advantages to having a guaranteed acceptance term life plan, including its very affordable price for many people. The younger someone is, the cheaper the policy will be. A young person in his or her 20s or 30s can buy a $500,000 term life policy from many underwriters for up to 30 years with a monthly premium of about $30 that will be guaranteed to remain the same for the life of the contract.

Purchasing the same level of coverage with a whole life policy would run much more, possibly as high as $400 per month or more due to the need to grow cash value over time. Because policyholders must provide the cash necessary to create the actual death benefit provided by a whole life plan, insurance experts do not consider it to be a true “insurance” policy like term life plans are.

Level term life insurance was the first kind of life insurance policy ever created and remains the smartest purchase for most people who choose to go that route to protect assets and financial obligations against the potential loss of a family’s primary earner. A level term life plan is a type of guaranteed term life insurance as it provides a great deal of insurance protection without a great deal of cost for a fixed number of years at the same rate each month and then expires. And guaranteed acceptance term life insurance policies do not require medical exams to purchase them.

The policies can be used as a type of supplemental term life insurance coverage that enhance already existing life insurance policies. An employer-provided life insurance plan or possibly a whole life insurance policy might already be in place. But the supplemental policy can be bought for a low price to give additional financial protection.

A couple who just bought a house might want a supplemental policy to protect the additional financial responsibility, for example. And supplemental policies can ensure additional funds are available to avoid a drastic change in standard of living if a primary provider suddenly dies.

When looking for guaranteed term life plans with level premiums and protection as well as guaranteed acceptance, the Internet has become one of the best tools for finding competitive term life insurance rates. Most life insurers have embraced the Internet for marketing their term life plans, which helped lead to a drastic reduction in term life insurance rates from about the mid 1990s through recent years, according to the Insurance Information Institute. Life insurers find it is easier to offer competitive rates with low marketing costs on the Internet than through other channels.