Variations of term policies

By: Adrian Rocker

Among the different types of insurance policies, term life insurance policy is the most common and mostly applied for cover. This type of policy is the most suitable policy for individuals who need a life cover but are not able to afford the permanent life insurance cover. There are many benefits that this type of insurance policy offers to individuals and it is no surprise that most people prefer to take up this policy as compared to other policies. This policy usually has low quotes that most people can afford. It has among the lowest life insurance quotes within all the life insurance policy types. There are different variations of this type of policy that are available to individuals.

The first variable of the term life insurance policy is the annual renewable and convertible term. This variation allows an individual to be covered for a period of one year only. However it allows the insured to renew the policy for successive periods thereafter but at higher premiums. This variation is highly preferred by many individuals because it does not require proof of insurability while renewing the insurance cover. The process of renewing an insurance cover may be daunting at times because of the requirement to provide insurability proof. After a period of being insured, anything could happen that may reduce your chances o being insurable for example you may get terminal illness. In such a case you application to renew the cover may be rejected even if the life insurance quotes are high. This variation of term insurance is therefore advantageous in case of any uncertainties occurring that may reduce your insurability. This is because it offers a chance to renew the cover at higher premiums but without providing proof of insurability.

Another variation of term life insurance is the level term variation. This policy has an initial guaranteed premium level for a specific period. The longer the guarantee, the larger the cost incurred by the buyer. Even though the costs may be higher for longer guarantees, the policy is still way affordable than permanent life insurance quotes which are too expensive for an average earner. These policies are renewable after the guarantee period. However, the premiums usually increase as the insured gets older. This type of policy is best for people who want a surety that they will receive the benefits at the end of the period cover if all conditions are fulfilled.

The last variation of term life insurance is the decreasing term insurance policy. This type has a level premium but the amount of death benefit to be received by the beneficiaries of insured individual decreases with time. This variation is usually used together with the mortgage debt protection. Many term life insurance quotes are set depending on the type of variation you want and they are generally affordable and offer flexibility to the insured as compared to permanent policies. Another attractive feature about term policies is the guarantee that an insured can renew the cover without necessarily providing proof of insurability.

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There are several variations of term life insurance policies. The variations have different life insurance quotes.

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