Actually what does term insurance mean? Before you purchase a term life insurance policy it is very important that you understand what it is. The word “term” means that there is a specific period of time that you are going to have coverage and when that period ends the coverage also ends. When the term has expired you will need to find a new insurance policy. In the insurance parlance, Annuitant is defined as a person who benefits from a pension or annuity.
The advantage of the annuity is that it provides a higher payment of the current value at the time of death. In case an individual dies before the policy period is over, the beneficiaries are the heirs who receive the accumulated amount of the annuity. The payments are subject to income and estate taxes.
There are some factors which affect insurance terms and rates- Date of birth is the important factor which is used to determine the annuitant’s age. If the annuitant is relatively young, the period of insurance will be long and therefore the premium will be low.
Another aspect that an insurance company looks into is the sex of the annuitant. Women generally tend to live longer then men for which the insurance company has to budget in a different way.
Which insurance is good for you? There are two type of insurance, first is term life insurance and second is whole life insurance. Term life insurance protects your family from outstanding debts including mortgage. If you are interested in building cash value over a period, then whole life insurance is the better option Please keep in mind that the longer the “term” policy is the more expensive it will be.
The insurance companies know this and use this information as one part of the equation in determining your insurance rates. We hope those people who for site where they can get good information about term life insurance quote online. To do it, you have to fill an information form online and submit it. No website selling your information to a bunch of insurance agents and thus you do not get bothered for weeks by multiple agents calling your house.