Term Life Insurance – Is The Cheapest Coverage The Best For
You?
 
Many internet searches reveal that you can get free term life
insurance quotes and premiums that are up to 70% off. With so
many options available, is it always in your best interest to
get the cheapest term life insurance coverage? And what does
""up to 70% off your term life insurance"" really mean?
 
Cost effective term life insurance is simply basic life
insurance that pays out a lump sum after your death. The
premiums for these polices are generally low because the
policies are like your house insurance; there is no cash value.
There are two basic types of term life insurance – decreasing
term life insurance and level term life insurance, but
decreasing term life insurance is gradually being phased out. 
 
What is Term Life Insurance?
 
Level term life insurance policies are not as cheap as
decreasing term life insurance but do a better job of
protecting you. Both of these life insurance policies have many
similarities. The reason for the different price structures are
that level term life insurance policies, owned by you, can pay
off your mortgage and still leave a pay out for your family.
The group term life insurance you buy through your bank, has a
decreasing balance but keeps the same premium.  A cheap
decreasing term life insurance policy pays only the bank a lump
sum to clear your mortgage; it doesn’t leave any money to pay
those you leave behind.
 
Term Life Insurance - Mortgage Priorities 
 
If paying off your mortgage is your priority, then you should
look to level term life insurance. You might have a 20 year
mortgage but a 10 year level term life insurance policy. As you
will need to renew the term life insurance policy at the 10th
anniversary, you might want to consider making it a 20 year
term life insurance policy.

About The Author: Ivon T. Hughes of the Hughes Trustco Group is
a licensed Insurance Broker. Author of The Life Insurance
Handbook. Get a FREE Copy TODAY! Email:info@trustco.ca
Web:http://www.hughestrustco.com