5 Year Term Insurance
This plan is very popular among the young earners, bachelors and single bread winners with a lot of dependants. The 5 Year Term life policies can be renewed every 5 years and it can be converted to a permanent life insurance plan at any time of the policy. The premium payable to the insurance company does not increase for each 5-year period. The policy can be renewed by the insured without undergoing any further medical tests for another five years up to the age of 80 years; you can convert this policy to a permanent life insurance plan before you turn 70. This plan is available for person between the ages of 18 to 70. This five year term insurance plan has additional riders and options at a slightly higher premium.
Features of 5 Year Term Insurance
Now let us look into the features of a 5 year term plan. First the amount of cover available- it is in the range of $50,000 to $5,000,000.
Next factor is the renewability factor. 5 year term period plans can be renewed by the insured up to the age of 80 without any medical procedures for another 5 years. The third factor to be seen is the convertibility factor. The 5 year term insurance plans can be converted to whole life policy by the insured any time before he/she is 70 years old without medical evidence. For this no extra cost is charged in the premium.
Optional Riders
We will now look into the optional riders available. These riders can be taken up at a slightly extra premium by the insured. Accidental death benefit rider is an option available with the 5 year term insurance plans.
Accidental Death Benefit is a rider available in 333z3e plans. In case the insured dies by accident and the payments are made till the last premium the cover is doubled. In case the initial coverage is $100,000 and the death is by accident the benefit will be a total of $200,000. This benefit is available for persons in the age of 18 to 60. For this rider no extra premiums are to be paid. The benefit is not available after the age of 70.
Disability Waiver is the next type of rider available. In this benefit if the insured becomes disabled for more than 6 months the premiums will be waived till you are back on your feet. The benefits are available up to the age of 65 years old. This benefit ends when you turn 65. This option is available for those in the age group 18 to 60.
The last type of rider available with 5 year term life insurance policy is the Child Term Rider. In this case you can purchase coverage for $10,000 to $20,000 for your children. The children should be dependant children in the age of 0 to 16 years old. The benefit will stop when the child reaches the age of 25 or you reach the age of 65 whichever is earlier. When the benefit ends the child can convert it into a term insurance or permanent insurance up to 5 times the amount of the child term rider.
Payments can be made annually, semi-annually, or monthly through the bank or credit cards or cheque or online banking. The policy fee every year is $75 for the first policy, and an extra $50 for each additional policy (spouse or child). In case you have more than one policy fee will be charged for only one policy.