What Is Term Life Insurance? What Are the Benefits and Why Is It Needed?

 

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What exactly comes to your mind when you hear the term ”Life Insurance”? These words are related to insurance coverage and the usage of the word ”term” signifies that the insurance coverage is for a particular time period. Therefore, it is called Life Insurance. Term life insurance is the most reasonable life insurance policy that provides coverage from a period of one to 30 years. It is an insurance policy where the policy holder makes annual payments, which are called premiums. A term life insurance policy is paid to the insurance company of the policy holder to keep the policy active and make sure the policy holder is secured upon death.

Reasons to purchase a term life insurance policy:

  • A policy with maximum coverage is pretty affordable.
  • It offers a tax-free death benefit.
  • It can be converted into a permanent life policy.

Why to consider Term Life Insurance of 20 Years or more?

  • 20 years or more is the best choice to obtain coverage at affordable premiums.
  • Policy holder guarantee-level premium with an option to renew at a higher premium.
  • Policy holders can upgrade a higher premium without providing proof of good health

There are three major types of term life insurance operational today, the level term life insurance, return premium term life insurance and annual renewable term. The difference between the three term life insurances is the level of policies applied one is renewable after a year, the other one offers returns on premiums to clients and the level term life insurance which guarantees a certain amount of premium for a specified number of years.

Term life insurance offers an affordable alternative to permanent life insurance even though many people do not know of its many benefits. If you wish to cover your loved ones with an insurance policy but do not have enough money to pay for lifetime insurance rates then a good option will be term life insurance. Term life insurance is also applicable when short term needs call for your attention. You can use this type of insurance cover to secure your child’s college education or a mortgage.

Being a parent, I would advise that you opt for an insurance policy that covers your children’s education. The insurance should get expired with the completion of their education and then only your life insurance should initiate.

If you are not acquainted with the term life insurance and you want to gain some knowledge, then let me help you on that. For anyone who is in the need of a good insurance policy, the choice of policy is something that shouldn’t be taken lightly. Take time and choose a good term life insurance that suits your need no matter how popular it is or how much its advert has been hitting your computer screen. Please remember that policies vary and they are framed to suit different people in different situations. Buy enough term life insurance that will see you through the times that you need it.