Term Life Insurance Rates

Term life insurance is a good insurance policy to have invested in with todays uncertain economy. A term life insurance policy is a structured settlement that can be mortgaged or sold. The rates and premiums payable on this type of insurance policy will vary on the age of the insured person, the length of the contract, the amount insured for and any number of other possible variations.

So what precisely is a term life insurance policy?

This is a structured settlement contract with an insurance company to mature on premature death or to mature at a predetermined time. The term 'to mature' simply means when the policy comes of age and is either redeemed or cashed in. Another way of looking at it could be the contract finishes and becomes payable when the agreed terms and conditions have all been met.

For example, if a term life insurance policy is taken out on a child at birth, the maturity date of the policy could be set for when the child attains the age of 15, 25 or even 50 years; whatever the parties agree to and sign the insurance policy to provide for, is then known as the policy maturity date.

If the maturity date of the policy is set for when the policy holder reaches 50 years and the premiums are all paid up with no arrears, then the insurance company has contracted to pay out the full face value of the amount agreed to in the insurance policy terms and conditions. These types of insurance policies can be for any monetary amount agreed to at the time of signing the contract and taking out the policy with the insurance company.

This insurance agreement is now a legally binding contract and the policy holder has agreed to pay the premium rates as agreed to in the policy contract. These premiums can be paid weekly, monthly, quarterly, half-yearly or annually. The important thing is not to have any arrears that could jeopardize the contract and cause any legal dispute.

If at some time in the future the policy holder decides that they would like to increase the insured amount, then a new insurance policy will be negotiated and added to the existing policy. It needs to be fully understood that this addendum contract is a separate insurance contract and will carry extra premium rates in accordance with what the policy holder has agreed to and signed up for. If this policy is taken out 10 years or so after the original policy then be sure to understand all the terms and conditions because it is very likely these will be quite different and separate to, the original policy.

Term life insurance rates will vary considerably as it will depend on varying factors.

Some of which are:

• Length of policy
• Age of insured person at maturity
• Age of person at time of signing the insurance policy
• Amount insured for
• Terms and conditions written into the insurance contract ~ or any other terms and conditions as specified in writing.

An Insurance policy is a contract so everything needs to be in writing and signed by all parties to the contract. A contract is a legally binding document so don't sign anything without first seeking legal advice.

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