Affordable Term Life Insurance is a Reality If You Can Keep Yourself Fit

Affordable life insurance without any medical examination sounds an interesting offer. But do not just go by the name of the policy. Take your time to enquire about the details of the policy. Do not forget the fact that the main motive of the insurance company is to make profit so why shall they provide a financial security to a person whose health conditions are not consistent.

The business model of any life insurance company can be simply put in the following way:-
Profit = earned premium + investment income ' incurred loss ' underwriting expenses.

The process of underwriting is followed by the insurer to decide upon premium that should be charged in the return of the coverage of the risk. Without the involvement of a medical examination it is difficult for the insurer to know about the risk that he will be insuring for. Without knowing this how can he decide about the premium amount that should be charged? Be sure that in such cases there are clauses that either you did not understand or you did not look for them because you did not expect them to be there.

One can't say that there is nothing like a affordable life insurance and buying a policy is just like buying anything else. All that you need to do is to select a best option. But to select one policy you need to know about the different type of policies that are available in the market. The two most important one are:

1) Term life insurance policy always covers the insured for a fixed years as per agreed by the insured and the insurer. The span could be from 5 years to 30 years, it depends upon your need for the coverage. You also have the option to renew the policy by paying a higher premium. The beneficiaries shall receive the death benefit only if the death happens within the period of the plan.

2) if you are looking for a life option throughout you life then Whole Life Insurance is the option. You keep on paying premium as long as you live and once you die and if the premium paid is up to date, your beneficiary will get the benefit. In this case the insurer has to pay the benefit in almost all the cases so it gives you an option to build up cash.

When compared term life insurance is a more affordable option. When it comes to whole life insurance or other life insurance policies the premium is higher also because they guarantee a return in the end and an option of cash build up. But it is not the same with the term life insurance, there is no cash build up and most of the time the insurer does not have to pay any benefit to the beneficiaries as this policy is valid only for a fixed tenure and usually the policy holder outlives the tenure.

Then, why does one go for term life insurance at all? They do so just to ensure that their loved ones do not face financial hardship if by chance something happens to them in future. The premium they pay buys them mental peace, they are happy in the thought that their loved ones are totally taken care of as much now as in the future.

You need to have a good control over your life if you are looking for an affordable term life insurance policy. Smokers attention please, you are subjected to a higher rate of premiums and even if you have left smoking and it's been in the recent times then also you need to pay a higher premium. The same is the case with the obese are more prone to various diseases. A woman 5' 6'' can weigh up to 220lb without attracting higher rate. If you cross that line, you will have to pay a higher rate.

Premium rates also depend on the length of term, the coverage amount, age etc. If the term is only five years and you are healthy enough, the premium charged will be affordable. However, when you try to renew the plan after five years, you will find the rate quite enhanced, yet affordable. When you go to renew for the second time you may find that it is no longer affordable. If you become terminally ill within that period, but do not die, you may find the insurer is not willing to insure you anymore. Therefore, in the end, the affordable term life insurance does not remain affordable at all.

To make it affordable, you should

- Decide what should be the exact period of coverage
- Decide how much coverage your family will need in the future
- Next contact some reliable broker
- Receive life insurance quotes from him
- Fill up the quotes
- On the basis of the quotes the broker will supply the most suitable rates
- The premiums will be fixed on the basis of rates
- So make the correct quote to get the most affordable term life insurance policy