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Term Quotes - What You Should Know First

Published Sunday, September 7, 2008 by bloggerblognet83280 | E-mail this post

Term quotes... what are they? Term quotes is basically a slang term for term life insurance quotes, and though it may seem obvious many people do not understand that. While we are on the subject of often misunderstood words in the life insurance industry I would like to clarify the word term. Term life insurance means that your policy will only cover you for a certain time period and that period is called the term. If you purchase a ten year term life insurance policy at the end of the ten years you have no more coverage and this is very important to understand and remember.

There are some term life insurance companies that sell guaranteed convertible and renewable policies. These are the policies that you should look for. Why? Because the guaranteed convertible clause will let you convert from your term policy to a whole life product that is sold through the same life insurance company. Not only do they let you convert but they also use your health conditions of the original policy to rate you for the new converted policy.

Why is this important to you? Well, let's say that you purchased a 30 year term life policy and in year 19 you had a heart attack. After your heart attack you felt fine and were easily going to out live the remainder of the 30 year term policy that you had purchased. Now you can convert this policy over to a whole life product and when the insurance company is figuring out what your new premium will be they can not use the heart attack against you. They have to use the health condition you were originally quoted at for your term policy. This can not only save you a lot of money but in this case it could make the difference of you becoming completely uninsurable. I do want to point out that you should read this part of your contract to make sure you know how long the convertible clause will be enforced. In other words you may purchase a 30 year term policy but the conversion clause is only good for 20 years. You can and should ask your life insurance agent to check this out for you and also have them highlight it for you so you can see it with your own eyes.

The renewable clause simply means that at the end of your term life policy you will be able to keep it in force by paying for it on an annually renewable basis. While there are some benefits to this, the big disadvantage is that every year the price you pay can and, for the most part, will go up and become quite costly.

These are just a couple of things to keep in mind while you are getting your term quotes or when purchasing a term life insurance policy. Just make sure you are working with an insurance agent that works for you!

Allen Henderson is an owner of the website http://www.LifeQuotes4You.com and frequently writes on the topic of Life Insurance. We work for you!

Blogger BlogNet14727

Term Quotes - What You Should Know First

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