One of the most popular life insurance policies is the 20 year
term life insurance policy. The purchaser of the policy usually
pays a level premium for the first 10 years. In some cases the
premiums remain level, and at the same rate, for the entire 20
year period, however most companies increase the premiums
starting in year 11 and they remain level for the balance of the
20 year term. This type of policy earns no cash values and
there, therefore, are no dividends.
This type of life insurance policy may be totally or partially
converted to a permanent policy at any time during it's lifetime
without having to prove that you can qualify for it, that is
without having to do a medical examination.
There are several uses for this
20 year term life insurance policy. You may use it to pay
off a mortgage in the event of premature death. In this case,
let us assume you have a mortgage balance of $100,000, you buy a
policy for the entire $100,000. Let us assume you die years
later when the balance owed is only $60,000. The insurance
company pays off the mortgage and the $40,000 balance goes to
your named beneficiary.
This is a good policy for a young family to start off with
because it is fairly inexpensive. Young married people need to
accumulate as much cash as possible as quickly as possible. They
may need to save for an upcoming baby, or, may be, for the down
payment on a house. They need an inexpensive life insurance
policy for family protection. They can, thereafter, put their
noses to the grindstone and save as much as they can in their
bank accounts, with their aforementioned goals in mind.
Business people find this 20 year term life insurance policy
very useful. You just started your business, you are reinvesting
every dollar that you can put your hands on in your business.
You need the least expensive life insurance to cover
shareholders in the event of premature death. This 20 year term
policy is ideal for the situation.
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