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Term life insurance at a closer look


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Term life insurance at a closer look

  1. 1. Term Life Insurance at a Closer Look
  2. 2. • There are different types of insurance for varying needs. These types include term life insurance, whole life insurance, mortgage insurance and protection insurance, and so on. If your particular need requires insurance for a specific period of time, then what you need is the term life insurance.• Term life insurance has a provision for a particular period of time. The payment is usually made using a fixed rate. This specific period of time is also known as the relevant term. Since it covers a particular period of time, expiration is to be expected. If the contract expires, the payment scheme also stops.
  3. 3. If this occurs, the client or the insurance policy holder has several options. One option is to enter into another contract which is similar to the previous term life insurance.However, the insurance policy holder will have a new insurance company for a partner. The other option is to continue the subscription on the previous contract. However, changes are to be expected regarding the cost, payment schemes and other related conditions. Another option is to enter into another insurance contract other than the previous insurance.
  4. 4. With regards to term life insurance, changes are made when the insured dies during the term. If this happens, the payment for the death benefit is given to the beneficiary. For this reason, investing on a term life insurance is considered as one of the more affordable ways to have a death benefit. In addition, it can be translated into cash value.Term life insurance is the basis for life insurance as it is known today. Another term for this is the term assurance.
  5. 5. This is very different in life insurances such as the whole life insurance and the variable universal life insurance. In addition, term life insurance is an ideal choice for business- minded person. This is because it can replace the income of a person for a specific period of time. The alternative choice requires the withdrawal of the bulk cash value under certain conditions.However, client should be aware if he decides to have insurance on his properties such as the house or a car. This is because if he sold the insured properties, the insurance company will not return the cash value that was paid by the policy insurance holder. For example, if an insured car is sold, the new owner can continue to pay for the car insurance. This is possible only if the insurance company approved of the request which usually happens in most cases.
  6. 6. • In addition, term life insurance has other benefits as it provides security for unpredicted events. For example, an insured house which was destroyed by a fire is likely to claim cash value from the insurance company. However, do not expect that the insurance company will automatically process the cash value. Claims can only be done if the policy insurance holder processes the required documents and fills out the necessary forms. During the application process for the claim, it must be noted that the contract should be current and valid.•