What Factors Determine Term Life Insurance Rates

  You may have found the best advice regard...

 Build Your Own Insurance Business with InsureAm...

 GE Mortgage Insurance Issues Statement on S&P C...

 Brochure Printing For Good Business Impressions

 Catalog Printing: A Subtle Way Of Seducing Cust...

 Book Printing Press In The Present Time

 Internet Marketing: Has Traditional Web Site Op...

  Newspaper Printing Transcending Time

 Six Steps to Guarantee Your Business Success

 Auto Loans: Don’t Dig a Money Pit in Your Garage

 Checklist for starting a business

 The fuel that drives the Ultimate Lifestyle

 How A Decision Can Save Your Life

 China Portfolio Insurance

 Sanity Check - Buying a Business

 Is Incorporating Your Small Business Best For You?

 Are You Using the Right Form of Energy?

 Small business investments

  After the latest advice concerning small ...

 Create Real Magic And New Customers

 Small Business CRM Is Here To Stay

 Advertising vs. PR in Your Small Business Marke...

 It's Time To Get All Strategic - Small Business...

 For Entrepreneurs A Simple IRA May Be Best

 Government Grants - What are they and how to ge...

 What Software Do You Need For Your Small Business

 SBA's 8(a) Program Can Help Some Companies Compete

 How to Choose the Best Small Business VoIP Solu...

 3 Essential Tools for Starting and Maintaining ...

 Does my small business need a budget?

 Getting a Small Business Loan

 There Are Tons Of Small Business Grants For Wom...

 Don’t Let Passions Rule When Buying A Business

 Why Is Small Business Health Insurance Worth It?

 Win Federal Contracts for Your Small Business

 Business Disaster? Won't Happen to Me

More Article Pages 1

What is term life insurance? You have an interest in buying term life insurance, that is why you are reading this article, and you want to know how it really works. Right? Well, there are many types of term life insurance and I am going to give you a brief explanation as to how each one works.

Decreasing Term Life Insurance

Decreasing term life insurance is very popular with home owners and mortgage companies. The homeowners want to know that the mortgage is paid off if they should prematurely die, and the mortgage company want to be assured that they are repaid the money loaned to the homeowner. The face amount of these policies decrease in a uniformed manner each year as the balance owed on the mortgage decreases, and the premium remains level. This is very inexpensive life insurance.

Increasing Premium Term Life Insurance

This is initially the cheapest term life insurance you can buy. The death benefit remains level for the duration, however, the premiums increase every year and as a result this may turn out to be the most expensive term life insurance you can buy. If you should purchase this policy it would be wise to convert to a level plan as quickly as possible.

5 Year Level Term Insurance

The face amount of this policy remains level for the entire 5 year period and so does the premium. Upon death the face amount is paid either in one lump sum or in the form of an income. If you have a short term need for life insurance, like covering a bank loan, then this may be the plan for you.

10 Year Term Life Insurance

Like the 5 year term life insurance policy, the ten year term life policy can be used to cover a bank loan, but it can do considerably more. It can be used for family protection and a myriad of other needs. The face amount of the policy remains level for the duration and so does the premium. Some companies allow you to continue the policy after 10 years with an increase in premium.

20 Year Term Life Insurance

The 20 year term life insurance policy is probably the most popular of term life policies. The death benefit remains level for the duration and in some cases so does the premium. With some companies, however, the premiums increase after the first 10 years to reflect the cost of the additional risk to which the insurance company is exposed as the insured gets older. All in all, the 20 tear term life insurance policy is fairly inexpensive and does the job it is intended to do.

Unlike whole life insurance, universal life insurance or variable life insurance, term life insurance does not have cash values or earn dividends. There is a fairly new type of term life insurance policy, however, called a return of premium policy which returns all your premiums at the end of the term period, if you do not die. The premiums are so high it may not be worth your while to buy this type of term policy.