When it comes to term life insurance, which is temporary coverage, the shorter the term, or length of coverage, the lower the rate charged for the life insurance policy.
So, a 5 year term life plan would cost you less than a 10 or 15 year term life insurance policy. Why? Because, the chances of you dying within the next 15 years are greater than the chances of you passing away in the next 5 years.
The shortest term would be a one year annual renewable term life insurance policy which lasts for one year, and you have the option to renew the policy for another year when the term ends.
However, as you get older, it may cost you more for a renewable of the annual policy when you are 65 for instance, than it would cost for your annual premium on a 10 year level term life insurance plan you purchased when you were 57.
That's why it is important to understand your options for term life insurance, compare rates and plans for different lengths of coverage, and make sure you compare pricing from several highly-rated insurers, as rates do vary by insurance company. Here's how you can compare low cost term life insurances online.
So, a 5 year term life plan would cost you less than a 10 or 15 year term life insurance policy. Why? Because, the chances of you dying within the next 15 years are greater than the chances of you passing away in the next 5 years.
The shortest term would be a one year annual renewable term life insurance policy which lasts for one year, and you have the option to renew the policy for another year when the term ends.
However, as you get older, it may cost you more for a renewable of the annual policy when you are 65 for instance, than it would cost for your annual premium on a 10 year level term life insurance plan you purchased when you were 57.
That's why it is important to understand your options for term life insurance, compare rates and plans for different lengths of coverage, and make sure you compare pricing from several highly-rated insurers, as rates do vary by insurance company. Here's how you can compare low cost term life insurances online.
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