Friday, June 19, 2009

What You Should Know about Tennessee Life Insurance

Most insurance policies are designed to protect you and your property from damage, injury or loss. The goal of Tennessee life insurance, in contrast, is to protect your dependents from financial and monetary loss, and to provide for their welfare when you die.

Before you run out and buy your Tennessee life insurance policy—research, research, research! The more you read and understand, the more likely you are to get the coverage you need.

It is important to compare deductibles and other policy specifics, and ask questions to clarify anything you do not understand. Many Tennessee life insurance policies appear to offer identical coverage; however, when you read the fine print, you may find significant differences.

What Are Your Choices?

There are many different types of Tennessee life insurance available, each designed to fit unique circumstances and individual needs. However, you can purchase two prevailing types of life insurance coverage in Tennessee.

Term life is the simplest form, and provides you financial protection for a temporary period of time. This type of policy may or may not be renewable. Tennessee term life policies are the best type to buy if you need large amounts of coverage for specific periods of time.

Initial premiums for this type of Tennessee life insurance are usually much less than for permanent life insurance—but they may increase each year for a specified period of time. Most term life policies do not accrue cash value.

This kind of policy provides good coverage for young Tennessee families raising children or paying off mortgages. They are, however, short-term solutions and do not build equity.

Monthly costs are low, so if you have limited resources, term life insurance is a good way to get the Tennessee life insurance protection you need.

Permanent life insurance provides you with long-term financial protection. This includes both a death benefit and, in some cases, cash savings. Permanent life insurance builds equity over time, but your Tennessee life insurance premiums are higher with this type of coverage than with term insurance.

The biggest advantage of this type of Tennessee life insurance is that rates usually remain steady once you purchase the policy, so you never have to worry about increasing premiums.

If you are attempting to meet long-range financial goals, you would do well with this kind of insurance.

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