The cost of term life insurnce has reduced in recent years in part due to the fact that we are living longer. Policies sold under a 10 year term have a premium which is guaranteed in 10 year blocks. As each 10 year period goes by, the premium will increase to a predetermined level. The longer you own the coverage, the higher the premium goes.
If you need for term insurance expires within the first 10 years, this is a very useful product. If your insurnace need will last for more than 10 years, you may be well advised to consider a 20 year term product. Within the 20 year term policy, the premium is higher then the 10 year term policy however the premiums in the later half of the 20 year term are quite faverable.
Calculated to the 20th year, the 10 year term becomes more costly overall.
No comments:
Post a Comment