There are many reasons why a person should get a Florida term life insurance policy over a permanent one. The most popular is the lower initial cost of the term life insurance policy, but strategically, there are more things to consider before a person gets a term life insurance policy. A professional life insurance agent will help a future policy holder figure out which insurance policy to get, but before that, here are some things people should know about Florida term life insurance policy.
Term insurance is tailored to meet one’s temporary needs. This insurance is offered at a term that usually ranges from one to ten, twenty or thirty years. It offers protection over the specific period of time or term wherein the beneficiary can only get the benefit only if the policy holder dies during the term. This type of policy is best if a person has a need for coverage that will disappear after some time such as when a debt has been paid off like house mortgage or until the time one’s child finishes college or until the retirement of a person whose profession required working in a hazardous environment.
Florida term life insurance policies require lower initial cost compared to permanent life insurance because a policy holder only pays for the death benefit its beneficiaries will be able to get should the policy holder die during the term. In permanent policies, the premium payments will fund the death benefit and, at the same time, it can accumulate cash value.
What Happens After The Florida Term Life Insurance Ends
With term life insurance, if the policy holder is still alive by the end of the term, the plan holder is offered an option to renew the policy should the policy holder realize the need to continue having life insurance. To do this, most companies will require the policy holder to present evidence of insurability. This means the policy holder will have to undergo another medical exam and answer a series of questions regarding health status, lifestyle, and family history. Renewing one’s policy also requires additional costs and increased premiums especially if the medical exams show that the policy holder’s health has deteriorated.
Some term life insurance companies offer additional features and riders to the ordinary term policies at extra cost for added benefits. The Return-of-Premium option requires higher amount of premiums by 20%-30% or even higher but allows the policy holder to refund the premium payments over the term once the policy term is through. Convertibility, on the other hand, allows the conversion of the policy into a permanent policy without submitting a new set of evidence of insurability. This is very important in the event a great change in one’s life occurred during the duration of the policy such as acquiring a long-term illness or failing health condition. Be sure to ask about these features before requesting for a quotation as these add-ons can really spell out the difference in the Florida term life insurance policy you are going to get. Check term rates with us…Simply enter some basic info below to get started.