What is Term Life Insurance Cover?
Term life insurance is the least expensive type of coverage and least complicated type of life insurance, at least initially. Coverage is in effect for a fixed term or period of time, typically 1 to 30 years and usually, can be renewed.
The policy pays your beneficiary a fixed amount of money if you die during the term of the policy. The premiums are lowest when you are young and generally increase upon renewal as you age. These policies do not build up a cash value.
Term life insurance provides life insurance protection for a specified period of time. If you die within the term period and the policy is in force, a death benefit is paid to your beneficiary. If you are still living at the end of the term, protection ceases unless the policy is renewed. There is no "accumulation" element, or cash value with term life insurance.
Term life insurance is mainly for:
- People with a temporary need for life insurance protection.
- Those who need a large amount of life insurance protection but have limited budgets.
- People with specific business needs (e.g., business owners who want to cover the life of a key employee who has a set number of years until retirement).
The following are the benefits of Term life insurance that should be considered:
- Term life insurance provides insurance protection for a low cost (at least initially).
- If your needs change, most term policies allow you to convert to a permanent life insurance policy without having to take a medical exam or provide other information about your health.
- Term life insurance is a good way to supplement other coverage when you have added financial responsibilities for a given period of time (e.g., mortgage, college expenses).
- Death benefits are generally received free from income tax
There are certain things which every individual should consider while taking the Term life insurance:
- Premiums generally increase with age and they could become unaffordable later in life. There is no cash-value element, so you miss the tax-deferred growth of the cash value of permanent life insurance policies, such as Whole Life Insurance.
- Once the term period expires, you should renew your policy as it is possible.
For more information feel free to visit http://www.unbeatablelifeandcriticalinsurance.co.uk.
Related Tags: policy, life insurance, term life insurance, premiums, life insurance protection
http://www.unbeatablelifeandcriticalinsurance.co.uk. Your Article Search Directory : Find in Articles
Recent articles in this category:
- Motor Trade Rundown
It is not just cars that must be insured on British roads, every type of motor vehicle is required b - Claiming Compensation For Defective Products
Compensation claims for injury and damage caused by faulty, defective products normally target eithe - Ideas To Uncover Affordable Rate Auto Coverage
These days, everyone is looking for ways to lower expenses. Certain costs like home and car insuranc - Should It Be Illegal For People To Drive Without Vehicle Insurance?
There are many drivers on the road who drive un-roadworthy vehicles. The worst part is not that they - Do You Need Static Caravan Insurance?
Static caravan insurance is an automobile insurance that deals with vehicles that are used while on - Insurance - Tool For Personal Finance Planning
Financial planning is must for every individual. When we start saving money for our goals, there is - Family Life Insurance Policy For The Families Staying In Dubai
The main motive of insurance policy is to give financial security to the person's family especially - Buying Temporary Health Insurance In Florida
You are the resident of Florida? You are between jobs and therefore are not looking for a long term - Car Insurance Is Of The Utmost Importance In Today's Lifestyle
In today's hectic lifestyle we are always rushing to get from one place to another, whether it be ru - Health Insurance Companies Are Using New Laws As An Excuse To Raise Their Rates
Government officials are cautioning insurance companies to stop utilizing scare tactics to steam up
Most viewed articles in this category:
- International Health Insurance: Insure Yourself While in Go
We all will agree that whether we are living in our home country or abroad, our health needs constan - It's Never Too Early to Buy a Long Term Care Health Insurance!
Most people delay buying a long term care health insurance because they think that it is too early t - Home Owner Insurance Quote: Stay Safe!
Your house will not be fully secured until and unless you have a home owner insurance policy. A home - The Benefits of Health Insurance Are Immense!
Almost everyone in this world has fallen ill sometime or the other. Apart from illness, many people - What Happens When You Make An Insurance Claim?
If you've never filed a loss claim before, you might feel nervous and confused about the whole proce - Pet Health Care Insurance: Show your Pets That you Care!
Having a pet in one's household is a joyful experience. It can provide you with entertainment, compa - Three Ways to Buy Long Term Care Without Paying Premiums Out of your Pocket
Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home an - Protect That Bauble: Engagement Ring Insurance
Engagement ring insurance can protect your bauble in case a worst case scenario happens...So you've - Do I Need Diamond Ring Insurance
If you have to ask whether or not you need diamond ring insurance you probably do. There's somethin - Choosing a Benefits TPA
The use of third-party administrators (TPAs) is one of the hottest trends in insurance today. Accor