Life insurance is one of the most important investments a person can make. These policies provide security and peace of mind for families. As a cornerstone of financial planning, it is important to understand what types of life policies are available and what benefits they provide.

Term Life

Term life insurance refers to a policy that pays a death benefit if the insured perishes during a specified period of time. Although some policies renew on a year by year basis, the most popular length of term is 10, 20, and 30 years. There are two main types of term insurance, level and decreasing.

For a level term policy, the benefit remains the same over the life of the policy. With decreasing term, the benefit decreases over time. Typically, decreasing term is renewable on an annual basis.

Decreasing term is usually not the sole life policy an individual owns. One common application for this type of insurance is mortgage life insurance. This is a policy designed pay off a mortgage debt in the event of the mortgagee's death. In keeping with its purpose, the insurance policy decreases over time to match the remaining amount of the loan.

Term insurance policies are the most affordable type of life policy. The only real benefit of term life is the payout at death. This is in contrast to whole life, which can provide other benefits. In spite of the limitations of term life policies, they are an effective way to provide peace of mind to a family.

Fox Insurance Agency

At Fox Insurance, we proudly serve Oregon, Washington, California, Arizona, Texas, and Nevada. Whatever your needs, we would be happy to help you find just the right policy to meet them. As an independent agency, we are able to provide quotes from more than one insurance company. We work only with highly recognizable, reputable insurers.

If you are interested in a term life policy, and live in Oregon or Washington State,contact us today. We would be happy to help you find the right policy for you and your family!

The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only and does not represent contractual agreements, nor is it intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. The definitions, terms and coverage in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.