Florida Health Insurance Terms:
What are Guaranteed Rates?":
A life insurance policy provision that guarantees the premium rates will not change during the entire term of the policy. Most guaranteed term life insurance policies have guaranteed rates.
Example -- When buying life insurance, most people choose term insurance because it seems to be the most cost-effective plan to cover a period of time when they need the maximum insurance. In the past, the longest guaranteed period offered by insurance companies was 30 years. Sometimes, depending on age, the maximum might drop to 20, or even 10 years.
When a life insurance need is indeterminate or lifetime, such as making sure your family will receive insurance proceeds at death no matter how old you are, the three main options were whole life, a combination of whole life and term, or universal life. In order to guarantee rates to 100, one needed to pay approximately double what a normal projected rate might be for a whole life and term combination, universal life, or the guaranteed whole life rate.
More On Guaranteed Rates: Budget Life Insurance
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