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term life insurance

Detailed coverage of what is term life insurance explained!

How to plan for future?

Nature has blessed human beings with the unbeatable power of wisdom. If due to any bad luck any dangerous situation befalls over a human being, he could think of thousands of options to fight with that situation. Same happens in the case of future planning. Due to the blessing of wisdom, human beings can plan their futures many years ahead and start taking immediate steps in order to ensure a comfortable future. If you are a person thinking about or worried about your future then we have some golden ideas to make your future secure and worry-free.

Life insurance: an option to secure the future of your generation:

There are many options through which a common person could secure the future of his loved ones; life insurance is one of those options. Life insurance is available in two forms; one is whole life insurance and the other is term life insurance. By the name of whole life you will be getting quite an idea that whole life insurance would cover your entire life, till your last breath. But most of the people are not able to understand the meaning of Term life insurance so we get this question most of the time: what is term life insurance?

Term life insurance:

Affording a life insurance policy is not an easy task as the life insurance plans offered by most of the companies are very expensive; especially the whole life insurance plans that offer coverage for your entire life are out of reach for most of the people. So that’s why most of the people go for term life insurance policies.

Coverage offered by term-life:

term life insurance

Term life insurance is the type of life insurance that provides coverage for limited amount of time; term life insurance plans are available for 5 years, 10 years, 15 years, or 20-25 years. Once the term has ended, it is up to you whether you want to renew your insurance policy or not. Term insurance provides limited coverage that’s why the premium rates are very affordable. If you are not able to spare any money for the whole life insurance policy due to your low income then you can easily select that term insurance plan which falls inside your budget.

Term life insurance for seniors:

Most of the people who fall in the age group of 60-90 ask that what is term life insurance for old people. Various suitable plans are also offered in the field of term life insurance for old people who don’t feel the need for whole life insurance. For instance there are many old people who feel that they don’t have enough life left to purchase a whole life insurance policy, they need a sort of policy that provides them with death coverage and is valid for limited time period. In such a case, they can easily fulfill their desire by purchasing a term life insurance policy with the minimum coverage term. For instance, if you are at the age of 70 and want to purchase a term life insurance plan then you can easily go for the plan with the minimum term such as 5 years term insurance plan. If by the end of these five years, you feel the need to carry on with your life insurance plan then you can easily renew it.

Most of the people are not properly acquainted with the path or procedure according to which a term life insurance policy moves, well we have provided you the proper guidance regarding this fact in the below mentioned details.

Death coverage in term life insurance:

The story of death coverage in whole life insurance is very simple. A person has to pay premium all his life and the coverage amount would be paid back to his beneficiaries upon his death. But most of the people ask that what is term life insurance plan regarding death coverage. In term life insurance, you pay the premium on your provided rates for the entire term and if you die during that term then the amount would be paid to your beneficiaries. Most of the term-insurance policies also cover accidental risks and in the case of the accident during the term of the life insurance policy you are going to receive the financial coverage.

How to renew the term life policy?

If by the end of the term you want to renew the policy then you can easily do it so by contacting your insurance agent or company. But most probably you won’t be able to renew the policy on previous rates.

Yes! You have heard it right, when your term has ended; most of the companies renew your policy for new rates. Although some of the companies would be willing to renew the policy for old rates but most of them are not willing to do it. We know getting a renewal on higher or different rates is a little disappointing but if you compare it with the rates of whole life insurance then you would come to know that even after the increase, the premium rates for term-life are still very low.

A low cost alternate for whole life insurance

term life insurance

There are many clients we meet on a daily basis who want to purchase a life insurance policy but are not quite acquainted with the word and meaning of term life insurance. All these clients know that the main concept of a life insurance is a policy that offers you coverage for your entire life. But due to the expensive nature of whole life insurance when the clients are offered with the alternate option of term life insurance they suddenly feel dull and half-heartedly ask that what is term life insurance and how does it work? Once these clients get to know the benefits and premium rates of a term life insurance policy, their spirits lift and they excitedly sign for a term life insurance policy.

Whole life might be good for you if you have enough money to pay the high rate premiums for your entire life but if you can’t afford that, then term life insurance is best for you.

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