Life Insurance Company

In order to select the right life insurance company for you, there are several factors which come into play. In determining your life insurance rates, most insurance companies will check your health, age, lifestyle, and whether or not you smoke.

Term insurance is perhaps the most basic form of life insurance. It usually provides affordable protection, often with a guaranteed premium, for some period of time. If the insured should die while the policy is in force, the face amount is paid to the named beneficiary. At the end of the premium guarantee period, the insured can renew the coverage at a higher premium. The premium for term insurance is initially lower than a comparable permanent insurance policy; however, it can increase at each renewal. This initial lower premium usually makes term life insurance an ideal choice for individuals with a temporary need for life insurance protection. Unlike permanent insurance, term life insurance does not accumulate cash value, and in most instances does not earn dividends. There are two basic types of term life insurance policies: those that increase the premium term, which renews annually at a higher premium; and those that level the premium term, which features a fixed premium for a specific number of years, and then increases in subsequent years.

One of the most valuable benefits to obtain an affordable term life insurance policy is the conversion privilege. While many term policies offer the ability to convert term coverage into permanent insurance without submitting proof of good health, this privilege is usually available during the first several years of the policy. If permanent insurance is not within your budget at the present time, the conversion privilege guarantees your insurability at a later date, even if you become uninsurable.

Another aspect to affordable term life insurance is to ascertain if the policy is guaranteed renewable, that is, you can renew your policy without a physical exam. Also be sure that it contains a conversion privilege. In addition, some life insurance companies offer a rider to extend the premium guarantee which, for an additional cost, guarantees that for a limited time, the premium will not be greater than the scheduled premium stated in the policy contract. This could give you the peace of mind that, in the short term, premiums won't be out of your price range.

Finally, some companies have added an additional standard premium class for individuals who smoke, but are otherwise in good health, and non-smokers with minor medical impairments. If one of these situations applies to you, it could be to your benefit to look for a life insurance company that offers such a rating class. Research the many life insurance companies online and find the most affordable term life insurance available.