Tips To Consider When Buying Term Life Policy

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The term life policy is a popular insurance product because it is cheaper, compared with the whole life policy. The policy offers a coverage often ranging from 1 to 30 years.

However, before choosing a term policy it is important to shop around because this is the surest way to get a product that has been priced competitively. Furthermore, you get an opportunity to buy your policy from a stable insurance company.

By checking any reliable insurance rating website, you will know the rating of a carrier before buying their product. An 'A' rated company is recommended highly, because they stand a high chance of remaining strong even during challenging economic times.

Furthermore, the chances of your claims being honored are high. The tips to consider when buying the term policy include:

· Conversion options

It is important to find out whether the policy can be converted at a future date. In the event of outliving your policy, your insurance needs remain. Therefore, it is important to know which options are available for converting the policy, without requiring a medical exam.

The option of converting your policy allows you to access insurability. Otherwise, you could apply for an additional 15-year term policy, but be considered insurable by the provider.

Therefore, before buying the term policy make sure to read the fine print. Some companies may offer conversion options with time limitations, such as conversions during the first 10 years or to policyholders who have attained a particular age, say 60 or 70.

· Income being replaced

It is equally important to know how much income you will be replacing when you buy a particular product. Consider the financial needs of your family over the course of the policy, taking into consideration the ongoing expenses, including the mortgage, tuition and rent.

Estimate the total income which needs to be replaced in order to cater for the needs of the family and capture the medical bills, funeral costs and college tuition. When choosing the amount of coverage to buy, you should bear in mind death benefits do not last for long, because the interest rates on investment and savings have fallen in recent years.

It is equally important to consider how long you will be working. Therefore, if you will be working for 25 more years, a 25-year term policy is good. This will contribute to a good stream of income during retirement, in addition to the retirement benefits.

· Other benefits

Most of the term policies carry extra riders, such as disability waiver of premiums which make it possible for you to access your premiums in the event of becoming disabled. The accelerated death benefit rider, allows you to get your insurance proceeds in the event of a terminal illness, while you are still alive. For further details please visit http://lifepolicy.info/.

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