WHY CONVERTIBLE ANUALLY RENEWABLE TERM LIFE INSURANCE
Those who buy term life insurance most of the time do so because it is a limited expense life insurance policy that insures the policy holder for a specific period of time. If the person who holds the life insurance policy should pass away during that period of time then the company pays out the death benefit of the term life insurance policy. The average time period that a term life insurance policy is taken out for is a year. If the insured person is still alive
after the period then they can then buy another one year term life insurance policy.
This is not the best deal for the person looking for a good term life insurance policy. If they should become ill during the year with something serious, something terminal, then they will be considered uninsurable. Each year the potential policy holder must pass a medical exam. This means that the person who is ill would be unable to be insured again and so would be left with no life insurance death benefits for their family. Therefore, this term life insurance is not the best option.
A better option would be to buy annual renewable term life insurance. This type of policy can be started at any point in time as long as the policy holder passes the medical exam. The term for these annual renewable term life insurance policies is usually anywhere from ten to thirty years. The annual renewable term life insurance policy holder pays once a year and as the person gets older the cost of the premiums will increase.
The advantage to this type of insurance is that there is more chance that the policy holder will get benefit from a long term policy and so the death benefits will be paid to the family of the insured person. If the person becomes ill during the coverage period the insurance company cannot do anything to terminate this type of policy. With some companies this can go on until the policy holder is ninety five, but not with all companies.
At some point the insurance company will tell the policy holder that they have reached the end of a term life policy's availability. Instead they will have to move on to a permanent life policy. Some companies want this to occur when the person reaches seventy five. This type of policy allows the policy holder to convert their renewable policy into what is called a permanent policy. This does not require a medical assessment.
Please contact us today for more information about annual renewable term life insurance 866-866-2960
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