Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Term Life Insurance and other Life Insurance topics.
Interested in term life insurance but not sure where to start? Here are some tips to start the ball rolling.
Tip 1. Learn About the Terms Associated with Life Insurance
• When you begin researching insurance products it can be difficult to sort through the many different terms. Some of the most common are:
• Beneficiaries – these are the people (usually your spouse, children, grandchildren, favorite charitable cause) you want to “benefit” from the proceeds of your term life insurance policy. They will receive the income your policy provides upon your death.
• Premiums – these are the payments you make to the insurance carrier on your policy. Premiums can be paid on an annual, quarterly or monthly basis. Amounts vary based on a number of factors. A term life insurance comparison can help you find the best available rates.
• Term life insurance – this insurance product is available for specific time spans, or terms, usually 5 to thirty years. If you die during the term, your beneficiaries are paid the face value of the policy. Term life insurance does not build cash value.
Tip 2. Determine Your Goal in Securing Term Life Insurance
• When purchasing any type of insurance, including low cost term life insurance, it is important to clarify your goals in doing so. For example:
• For what purpose will the money be used?
• How much money will be needed?
• Who will benefit from the policy?
• How will the proceeds help the beneficiary?
• How does the policy compliment your other financial interests and plans?