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First, please note that MCD Financial Services online is Not associated
with any insurance or investment company. This allows us to answer your
questions in an unbiased manner and help you find the right plan with the
right benefits to meet your needs
Some
Important Points To Consider
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Term insurance
premiums are generally set close to the actual cost of insurance.
This means that this is the least costly kind of insurance for specific
terms of insurance, and there will be no cash value.
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The longer
the term of coverage that you need, the higher the payments will be.
You should also check the length of time the premium is guaranteed
for. It is not necessarily the same as the term of insurance. For
example, a twenty year term plan may have payments guaranteed only
for five or ten years.
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A term
policy may also be renewable, but it will be for a higher premium
than before and the amount of the increase could depend upon your
health or other risks factors.
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A term
policy may also be convertible, meaning that before the end of the
term or up to a certain age, it may be traded for a universal life,
whole life or other types of permanent cash value life insurance policy,
regardless of your health. This option is not always available
and can expire without notice form your insurer. Make sure you check
your yearly notices. Also, your payments on the new plan may or may
not be higher than a term policy payments.
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Decreasing
term life is an option often used for mortgages. We do not recommend
this type of insurance as it tends to be much more expensive and can
be very detrimental to your long term needs. A level term life policy
is by far a better choice.
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Last,
make sure you ask a lot of questions from your broker or you
can also
e-mail us a question and, as always, you will receive an unbiased
answer. Thank you.
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