Term Life Insurance - The Good, the Bad and the Extra Benefits
A life assurance or insurance policy is a form of financial shield for the insured and his or her family.
In case the insured unexpectedly dies due to an accident or sickness, the family that is the beneficiary of the policy can get financial assurance for the lost income brought by the unexpected loss of life.
Since the insurance is for the life of the insured, the insurance policy is in effect as long as the insured is alive.
The premiums, therefore, continue to be paid all through the term of the insurance policy.
However, the length of term and the coverage of the policy will depend on the type of life insurance policy.
What Is Term Life Insurance? There are three types of life insurance policies: term, whole and universal.
One of these types is term life insurance, which is considered a 'pure insurance' policy because it only covers the expenses incurred during its term.
The terms may be either 10, 20 or 30 years, depending on the age and income of the insurance policy owner.
The insurance coverage may be the following: ill health, injuries from accidents, or the sudden death of the insured.
All these misfortunes result to loss of income for the family because of the insured's inability to work.
Because of the insurance policy, the family is assured of financial support during or after these insured events.
All these medical and health benefits are available to the insured and the beneficiaries for a lower premium that only rises in amount as the policy matures.
The benefits of a term life policy do not increase in value and there is no other cash value to claim after the policy matures.
Why Choose Term Life Insurance Although a whole life plan is reasonably the more attractive choice, a term life may be a better option for certain people.
Term life, unlike other types, has less expensive premiums.
The period specified for your insurance policy, although short, is beneficial for those who are wary of investing a large amount on something they might not make use of in the future.
Despite expectations of a higher cash value at the end of the whole life or universal life policy's maturity, the amount of money may not be as large as promised.
The interest and the profits from investments will still depend on the changing rates in the market.
In essence, there is no complete guarantee that you will get what you expect, although you will not completely lose your financial investments.
Term life insurance has the basic medical and health coverage needed by each policyholder.
You do not have to worry about being shortchanged for the benefits that you think you deserve.
Each policyholder is guaranteed protection no matter what type of life insurance he or she owns.
In case the insured unexpectedly dies due to an accident or sickness, the family that is the beneficiary of the policy can get financial assurance for the lost income brought by the unexpected loss of life.
Since the insurance is for the life of the insured, the insurance policy is in effect as long as the insured is alive.
The premiums, therefore, continue to be paid all through the term of the insurance policy.
However, the length of term and the coverage of the policy will depend on the type of life insurance policy.
What Is Term Life Insurance? There are three types of life insurance policies: term, whole and universal.
One of these types is term life insurance, which is considered a 'pure insurance' policy because it only covers the expenses incurred during its term.
The terms may be either 10, 20 or 30 years, depending on the age and income of the insurance policy owner.
The insurance coverage may be the following: ill health, injuries from accidents, or the sudden death of the insured.
All these misfortunes result to loss of income for the family because of the insured's inability to work.
Because of the insurance policy, the family is assured of financial support during or after these insured events.
All these medical and health benefits are available to the insured and the beneficiaries for a lower premium that only rises in amount as the policy matures.
The benefits of a term life policy do not increase in value and there is no other cash value to claim after the policy matures.
Why Choose Term Life Insurance Although a whole life plan is reasonably the more attractive choice, a term life may be a better option for certain people.
Term life, unlike other types, has less expensive premiums.
The period specified for your insurance policy, although short, is beneficial for those who are wary of investing a large amount on something they might not make use of in the future.
Despite expectations of a higher cash value at the end of the whole life or universal life policy's maturity, the amount of money may not be as large as promised.
The interest and the profits from investments will still depend on the changing rates in the market.
In essence, there is no complete guarantee that you will get what you expect, although you will not completely lose your financial investments.
Term life insurance has the basic medical and health coverage needed by each policyholder.
You do not have to worry about being shortchanged for the benefits that you think you deserve.
Each policyholder is guaranteed protection no matter what type of life insurance he or she owns.
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