Insurance Over Texas Offers Term Life
Insurance in the Houston, Texas Area
Find information about term life insurance
Term life insurance provides coverage for a specific period of time, normally from one to 30 years. It pays a death benefit only if you pass away during this term. Various policies can be automatically renewed at the end of the policy coverage period, and others can be changed to a whole life insurance policy without need for a medical exam.
Several types of Term Insurance
you can consider:
Renewable Term Insurance
These policies have a condition permitting you to renew coverage at the end of the policy term without having to providing evidence of insurability. The company is required to renew your policy even if your medical state has deteriorated. However, the policy premium will rise with each renewal.
Convertible Term Insurance
These policies permit you to convert your term insurance coverage into a permanent policy without showing evidence of insurability. Premiums rates for convertible policies are frequently greater than for nonconvertible policies. Once converted, the rate for the permanent coverage will be larger than those of the term policy with identical death benefit. However, the permanent policy premiums rate will stay the same while the term rate increases.
Level Term Insurance
These policies offer a fixed premium for a specific number of years, typically 10 or 20 years, while the death benefit remains unaffected. The death benefit is the sum the life insurance company will pay, as declared in the policy, when the insured passes away. The benefit is that you lock in a certain rate for the length of the policy period. The drawback is that the premiums will have a tendency to cost more than the prior years of the renewable policy, and when the level policy runs out, premium rates will increase considerably if you want to renew with a different level policy.
Decreasing Term Insurance
The death benefit in this kind of policy declines over its term. For example, you might begin with $80,000 of protection and the coverage amount decreases by $8,000 each year for 10 years. The premium rate generally stays the same over the policy term. This type of insurance permits you to pay the same rate for less insurance over time, instead of having your rate increase for the identical amount of insurance.
Increasing Term Insurance
This type of policy begins at one level of death benefit which steadily increases over the life time of the policy. You may begin with a $80,000 policy and increase the death benefit $8,000 every year for 10 years. The rate will rise each year. This type of insurance may be appropriate if you perceive your insurance needs increasing in coming years because, for example, you plan to have more kids.
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