Almost every individual has an insurance plan that supports its life. The main concern is the variety of coverage. both permanent and temporary plans are available. Permanent plans provide lifetime coverage at very high premium rates while temporary plans offer short-term benefits but at a low premium rate.
An example of temporary insurance plan is term life insurance. This is one variety of life insurance plan that covers a person under a fixed premium rate and for short span of time. Unlike the permanent plans, you can change your plan in accordance to your relevance. You can change the plan into another one or stop it totally. If you want to continue with it, you can renew it at every need of term. In case you want to get the benefits until you acquire adequate savings, you can then go on with it until your retirement age.
Term life insurance plans are categorized into 5 groups. They all have their benefits and limitations that you ought to know so that you select the one that will be most convenient for you. The first type is the annual renewable life term insurance plan. According to the polices, you have to renew this insurance coverage every year. Every time there is a renewal, you have to increase your premium. For example, you can choose a plan that last up to your retirement age.
Renewable term life insurance plan makes the second variety of this insurance plan. This type of plan can be more costly following the risks that are involved. Its terms state that it should be renewed after every end of term which normally last for about five to twenty years. It is more costly compared to the annually renewable plan. The third type of term life insurance plan is level premium. There are many aspects that make it different from the first-mentioned types. Here, the amount aid as premium when the term ends is fixed. One thing about this category of insurance plan is that it ensures that the holder pays even less in the later years. This is when it is compared to the other types.
Number four of the types of term ,life insurance plan is convertible term insurance plan. It is known to be the most convenient. Following its program, you can change your policy to any other type of term life insurance plan. Decreasing type of term life insurance plan. Following the above discussed types, it means that there are many options to choose from provided you put into considerations a few things such as your priority.