Florida Health Insurance Definitions

Florida Health Insurance Terms:
"Guaranteed Term Life Insurance"

What is Guaranteed Term Life Insurance?":

Term life insurance is perhaps the most basic form of life insurance. It usually provides affordable protection, often with a guaranteed premium, for some period of time. If the insured should die while the policy is in force, the face amount is paid to the named beneficiary. At the end of the premium guarantee period, the insured can renew the coverage at a higher premium.

The premium for term life insurance is initially lower than a comparable permanent insurance policy; however, it can increase at each renewal. This initial lower premium usually makes term insurance an ideal choice for individuals with a temporary need for life insurance protection.

Term life insurance has become very popular with consumers in recent years because of the new and longer rate guarantee periods and because premiums for new policyholders have recently dropped to all-time lows. Term life insurance premiums have recently dropped to all-time lows. For example, a healthy, non-smoking 40 year-old male can now buy $500,000 worth of 20-year guaranteed term life insurance for just $365 per year. A $1 million policy goes for only $650 per year, which is far less than twice the cost of the $500,000 policy.

Choosing an initial rate guarantee period is easy. Simply match the period of time you’ll need coverage to the available rate guarantee period. For example, if your children are young and you have decades to go on your mortgage, try 30 year term life. If your children are leaving the nest and your home is paid off or nearly paid off, 10 year term might fit the bill.

More On Guaranteed Term Life: Benefit House

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