Term Life Insurance Policies

Written by Genevieve Hawkins
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Life insurance can be a tricky and complex business, but it doesn't have to be. Generally, the policies are designed to make it as simple as possible, but of course, the insurance company wants its money from you. Depending on how you play your cards, you may be able to get low cost term life insurance that is transferable, affordable, and sensible. Some policies may even offer you your money back at the the end of the term.

Variable and Fixed Rate Life Insurance

Life insurance usually comes in two different varieties--variable and fixed rate. A variable rate term life insurance policy is designed to fluctuate as risk does. Although it may seem the better deal in the younger and healthier stages of life, it will not cover you when the risk of death becomes higher.

Because of this, many people have opted for fixed rate term life insurance. This type has an even payment (either monthly, yearly, or up front) throughout the term of the insurance. It can be renewed after the policy expires in five to 20 years for a higher cost, or reworked into another type of settlement. The cost is initially higher, but the payments remain the same over time even as death becomes more likely. Many people opt for these plans because they are convenient.

Another type of term life policy that is increasing in value is known as a return of premium (ROP) policy. Unlike most term life insurance policies, this one returns the annual payments at the end of the term if you are still alive. No matter what you want to do, there is an agent who can help you work it out, or an online tutorial that can explain it.


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