But, many people feel they just don't know enough about auto insurance to compare the value of one policy to another. Still, studies say that a majority of consumers don't shop around when buying or renewing an auto insurance policy. COVERAGE An auto insurance policy is a package of seven main types of mandatory and optional coverages, each with its own premium. By taking one of...

Term Life Insurance Defined

Bill Mason

Term life insurance is by far the simplest form of life insurance. Term life insurance is simply that, insurance for a term or specific period of time. It pays a benefit only if you die in the designated period of time. On the downside, it pays nothing if the policy expires before you die. It is often referred to as temporary life insurance.

Policies generally last for 5, 10, 15, 20, or 30 years. Many policies are convertible, which means that you have option of switching to a permanent life policy. The main advantage of a term life policy is that they generally have lower premiums. They are good for covering needs that may disappear in time, such as car or mortgage loans.

They also have some distinct drawbacks. Premiums generally increase with time. This means that you will be paying considerably more in your later years, when your need for protection is generally lower. Another factor to consider is that your coverage may expire at the end of your term, leaving you with nothing to show for your investment. You are essentially back at square one.

Insurance agents often recommend that customers switch term companies every couple years, in order to take advantage of promotional pricing. One should be mindful of doing this, as you will be subject to a new contestability period. A contestability period is normally two years. If you die during this period, the insurance company will likely review the statements you made on your application. If you have made any inaccurate or incomplete statements, the insurance company will likely refuse payment.

Life insurance is no laughing matter. When you are considering purchasing life insurance, please do some research first. Spend some time considering questions, and pose them to a trusted insurance broker. Be especially wary of purchasing insurance from a door to door salesman, as they are likely trying to sell term life insurance which may or may not suit your needs. After all, it is your hard earned money that is being spent. And it is the well being of your family that will be impacted by your decision.
About the Author

Bill Mason is a retired insurance salesman, and is well versed in the ways of the industry. When he is not advising friends and family on the importance of insurance, he writes freelance articles for http://www.insuranceguide101.com - an independent insurance guide dedicated to helping you understand insurance, with information about cheap auto insurance.

The latest information and news on Car Insurance:

car insurance - Google News

Multi Car Insurance Policies - Lolita Storm (blog)

Multi Car Insurance Policies
Lolita Storm (blog)
Multi car insurance means that you are entitled to a discount if the car is registered to the same address. It doesnt matter if it is a spouses car, ...
Get the reviews of all cars at autodriver.com before buying a new carEarthtimes (press release)

all 3 ...
Farmers to Lower Car Insurance Rates for Some California Policyholders - Insu...

Farmers to Lower Car Insurance Rates for Some California Policyholders
Insurance Rate
Farmers move brings the insurer into compliance with a 2006 state law that altered the way car insurance providers could determine their premiums, ...
Farmers to cut auto insurance rates for some California customersL...
Do you lie to get cheaper car insurance? - This is Money

This is Money
Do you lie to get cheaper car insurance?
This is Money
Car insurance premiums have rocketed by more than 30% over the last year, from Ł538 to Ł704, an increase of Ł166, according to the latest research by AA. ...

and more »
Online Car Insurance Companies offers Free Car Insurance Quotes - Granite Bay...

Online Car Insurance Companies offers Free Car Insurance Quotes
Granite Bay View
Finally we discuss the type of low car insurance For having been the subject of a made temporary drop in traffic Either by moving to another country or ...
Local Company Offers Affordable Car Insurance QuotesLive-PR.com (p...
Ontario car insurance double national average on fraud - CANOE

Ontario car insurance double national average on fraud
CANOE
Consumers in Ontario pay almost double the national average for car insurance because of fraud and abuse, though efforts to ...
RBC warns of rising insurance fraudCTV.ca

all 5 news articles »
auto insurance - Google News

State Auto Financial Reports Second Quarter 2010 Results - MarketWatch (press...

State Auto Financial Reports Second Quarter 2010 Results
MarketWatch (press release)
Additional information on State Auto Financial Corporation and the State Auto Insurance Companies can be found online at www.StateAuto.com. ...
State Auto Financial posts wider-than-expected Q2 lossReuters
Storm Losses ...
Farmers to cut auto insurance rates for some California customers - Los Angel...

Farmers to cut auto insurance rates for some California customers
Los Angeles Times
The move, announced Tuesday, puts the company in compliance with a state law passed in 2006 that changed the way auto insurance providers could calculate ...
Farmers Insurance to cut auto insurance rates in CaliforniaCe...
Federal government or states: Who should be responsible for immigration ... -...

msnbc.com
Federal government or states: Who should be responsible for immigration ...
Wall Street Journal
... are here illegally and they pay little in taxes, do not have vaild drivers licenses and carry no auto insurance so my auto insurance continues to go up. ...
Arizona Law Questions: Racial Profili...
The Progressive Corporation Announces Investor Relations Conference Call - Ma...

The Progressive Corporation Announces Investor Relations Conference Call
MarketWatch (press release)
The Progressive Group of Insurance Companies makes it easy to understand, buy, and use auto insurance. Progressive offers choices so consumers can reach us ...

and more »
Storm claims rain down on Sask. insurers, topping $100M - Vancouver Sun

Nanaimo Daily News
Storm claims rain down on Sask. insurers, topping $100M
Vancouver Sun
The Crown corporation, which operates a general insurance business under the name SGI Canada and also manages the province's compulsory auto insurance plan, ...
Sask. damage claims over $100M following several s...