Monday, March 5, 2012

Term Life Insurance – The Smart Way to Save Money

Term life insurance is the most convenient type of life insurance to understand. In term life insurance, the person who has this insurance policy pays a nominal premium on every 1000 dollars of coverage on a yearly, semiannual, quarterly or monthly basis. If the insured person dies within the term of the insurance policy, then the insurance company will be liable to pay the beneficiary the face value of the term insurance policy. There are so many insurance companies all over the world, which are providing term life insurance to the people. Premium rate on the term life insurance plan may vary from company to company. Therefore, it is important to get different quotes from different insurance companies before buying a term life insurance plan. Many companies do not give what they promise so screening of the company is also very important while buying the insurance policy.

Some Important Features of Term Life Insurance

  • This is pure insurance because when you get a term insurance plan then you are actually purchasing a death benefit. Apart from other types of insurance like whole life, universal life, and variable universal life, there is no extra cash value built up in this kind of insurance policy. This is the only insurance policy, which gives a specific death benefit.
  • The coverage in this type of insurance is for a the term such as one year, five years, ten years, fifteen years, and so on. When one gets the term life insurance then it remains in force until the finish of the term, assuming he/she is paying the premiums on time.
  • Most of the term life insurance plans are renewable at the end of policy term. With Level Term Life Insurance, the death benefit remains similar during the term of the insurance policy, but the premium will increase gradually because the insured person is getting older. On the other hand, in decreasing term life insurance policy premium remains the same, but the death benefit goes down with the time.
  • Most of the term life insurance plans can also be converted to permanent insurance plans within specific years. A permanent insurance plan accumulates cash value, which enhances the death benefit paid to the beneficiary.
Resource Box: Hi, my name is Muhammad Azam and I am an avid blogger and professional writer. I have experience in writing articles on PR media, life term insurance and on life assurance.

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