Term Life Insurance - Get Financial Security For a Limited Period of Time
Everyone needs a financial security to protect his family from a crisis.
For this reason, there are a wide range of insurance plans available in the market and most important are two types, Temporary Term Insurance and Permanent Life Insurance policies.
Each policy of these has its own objective and purpose.
Therefore, an individual needs to know his requirement and then go ahead for purchasing a policy.
However, if they want to get a good coverage and pay the minimum then they can go ahead with term life insurance policy.
Term life insurance -what is it? This plan is for a specific period of time and vary from individual to individual and usually preferred to other insurance policies as the money involved in buying.
A person is eligible to purchase any of the five insurance policies offered by the insurance company.
How different is it from a permanent life insurance? In a permanent policy, a person needs to pay more in premiums than the actual insurance coverage and covers till he dies.
In term insurance, the premiums are much lower which do not guarantee any coverage till the policy holders' death.
So, before choosing between these two, one must estimate his needs.
What are the types? There are different types of plans for term life.
A person can renew his policy every year which is called annual renewable insurance.
Generally, lasts for 65 years.
As per this plan, at the end of year it gets automatically renewed.
A person can also go for the renewable plan which would automatically renewed at the end of every 5 years if the term is of 5 years.
As the conditions for this policy involve greater financial risk, the cost of it is also on the higher side.
Most commonly purchased insurance plan is the level premium insurance policy.
The person holding this policy needs to pay the same amount of premium in each term and continue paying the same amount at the end of each term.
The advantage of this is felt in the later days of the policy as the amounts of the premium do not change.
If a person wants to pay lesser he can go for the decreasing term plan.
The cash benefits in this policy keep decreasing every year.
This way the policy holder can pay a little more in the initial days, but end up paying less in the later days.
The fifth type of plan is the convertible where the policy holder can change his policy into other plans of above.
As the risk involved in this policy is more, the cost of this policy is also on the higher side.
For this reason, there are a wide range of insurance plans available in the market and most important are two types, Temporary Term Insurance and Permanent Life Insurance policies.
Each policy of these has its own objective and purpose.
Therefore, an individual needs to know his requirement and then go ahead for purchasing a policy.
However, if they want to get a good coverage and pay the minimum then they can go ahead with term life insurance policy.
Term life insurance -what is it? This plan is for a specific period of time and vary from individual to individual and usually preferred to other insurance policies as the money involved in buying.
A person is eligible to purchase any of the five insurance policies offered by the insurance company.
How different is it from a permanent life insurance? In a permanent policy, a person needs to pay more in premiums than the actual insurance coverage and covers till he dies.
In term insurance, the premiums are much lower which do not guarantee any coverage till the policy holders' death.
So, before choosing between these two, one must estimate his needs.
What are the types? There are different types of plans for term life.
A person can renew his policy every year which is called annual renewable insurance.
Generally, lasts for 65 years.
As per this plan, at the end of year it gets automatically renewed.
A person can also go for the renewable plan which would automatically renewed at the end of every 5 years if the term is of 5 years.
As the conditions for this policy involve greater financial risk, the cost of it is also on the higher side.
Most commonly purchased insurance plan is the level premium insurance policy.
The person holding this policy needs to pay the same amount of premium in each term and continue paying the same amount at the end of each term.
The advantage of this is felt in the later days of the policy as the amounts of the premium do not change.
If a person wants to pay lesser he can go for the decreasing term plan.
The cash benefits in this policy keep decreasing every year.
This way the policy holder can pay a little more in the initial days, but end up paying less in the later days.
The fifth type of plan is the convertible where the policy holder can change his policy into other plans of above.
As the risk involved in this policy is more, the cost of this policy is also on the higher side.
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