Term Life
Insurance- The Economic Insurance Option
Term life insurance is cheaper than other type of insurance plans. It
can be purchased for a certain number of years, which is usually 7 to 10
years. The premiums of such insurance plans can be low if you are
young, you are a non smoker and in good health for which the insurance
company will make you undertake a medical examination. This type of
insurance is also useful in case you are suffering from an illness for a
certain period of time. It can be renewed and is best suited for people
who have temporary/short term needs; people who are just beginning
their career and do not have enough finances with and for those people
who are likely to have changes in their insurance needs in the future.
The other advantages are that term life insurance is non taxable and has
the option of being converted into whole life insurance thus giving you
the option to choose the policy based upon your changing needs.
Besides the given advantages, term life insurance has some pitfalls which you must guard yourself against when you purchase the insurance. Term life insurance does not build any cash value, the premiums you pay go directly to keep your insurance effective and nothing else. The policy can expire without maturity and the insured amount is payable only if the insurance has been kept effective by regular payment of premiums. The policy lapses at the end of the term unless renewed. Every time the policy is renewed there is an increase in the premium amount and the amount of premium to be paid depends at what age the insurance is being renewed.
Since there are number insurance policies available, there is always a possibility of missing out the correct type of policy which suits your requirements and can be purchased at low rates. Though term life insurance is cheap at the beginning but it becomes costlier as the insurer ages. The best way out is to have the insurance for a longer period of time though you may be paying a slightly higher premium in the long run. Most people look at term life insurance from a safety point of view and would like to see their money going towards the needs of their spouse and children.
Besides the given advantages, term life insurance has some pitfalls which you must guard yourself against when you purchase the insurance. Term life insurance does not build any cash value, the premiums you pay go directly to keep your insurance effective and nothing else. The policy can expire without maturity and the insured amount is payable only if the insurance has been kept effective by regular payment of premiums. The policy lapses at the end of the term unless renewed. Every time the policy is renewed there is an increase in the premium amount and the amount of premium to be paid depends at what age the insurance is being renewed.
Since there are number insurance policies available, there is always a possibility of missing out the correct type of policy which suits your requirements and can be purchased at low rates. Though term life insurance is cheap at the beginning but it becomes costlier as the insurer ages. The best way out is to have the insurance for a longer period of time though you may be paying a slightly higher premium in the long run. Most people look at term life insurance from a safety point of view and would like to see their money going towards the needs of their spouse and children.
1 comments:
As we all know that there are a range insurance policies out there, there's perpetually an opportunity of missing out the proper form of policy that suits your needs and might be purchased at low rates. Though term life insurance is reasonable at the start however it becomes costlier because the insurer ages. the most effective solution is to own the insurance for a extended amount of your time though you will be paying a rather higher premium within the end of the day. Thanks for sharing such nice post with us.
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