Different types of affordable term life insurance

Three factors are taken to be in consideration in instant term life insurance. First, the length of coverage or term; Second, face amount or the protection or death benefit; Third, premium to be paid or cost insured. Different combinations of these three parameters are sold in term insurance by various companies. The face amount of the term insurance may decline or can remain constant. The least term is one year and it can be more than one depending upon the agreement of the applicant and the company. The three types of term insurance include Level, Annual Renewable and Mortgage insurance.

Level Term policy has the premium fixed for a period of time longer than a year. These terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level term is often used for long term planning and asset management because premiums remain consistent year to year and can be budgeted long term. At the end of each of the term, conversion option or renewal option can contain in some policies.

Guaranteed Renewal, the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Some companies however do not guarantee renewal, and require proof of insurability to mitigate their risk and decline renewing higher risk clients.

Renewal that requires proof of insurability often includes a conversion options that allows the insured to convert the term program to a permanent one that the insurance company makes available. This can force clients into a more expensive permanent program because of anti selection if they need to continue coverage. Renewal and conversion options can be very important when selecting a program.

Annual renewable term is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owner’s residence so the mortgage will be paid if the applicant dies. A policy holder insures his life for a specified term.

If he dies before that specified term is up with the exception of suicide, his estate or named beneficiary receives a payout. If he does not die before the term is up, he will receive nothing. However, in some European countries, insurance policy is such that the policy holder receives the amount he has insured himself to, or the amount he has paid to the insurance company in the past years.

Suicide used to be excluded from all insurance policies; however, after a number of court judgments against the industry, payouts do occur on death by suicide. Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period.

Affordable life insurance can be availed in these following types of instant term life insurance. The applicant must still be aware of the term life insurance quotes of these different types in order for him/her to get a desired term life insurance in which he/she can afford. The applicant must therefore have knowledge about the insurance company and the terms and conditions of the agreement in the term life insurance to avoid hassle.

When checking with your agent on term life insurance, ask a lot of questions. Generally, agents do not receive as much commission on term life insurance verses cash-value policies so you may have to probe a little for more information. A return of premium life insurance policies are given to you by multiple companies. Term life insurances are sure tricky at first but once you get the hang of it finding a term life insurance that you can afford will just be easy. These will guide you to get a glimpse on how term life insurance are and give you information on what term life insurance is suitable for you.