There are so many types of risks are associated with the life of everyone in this world that why every person needs protection with respect to his life, property, business and all those things which have some value to him. It is noted that there is no one protective tool as an insurance policy. Insurance provides protection for yourself, your investment and your business. Disaster or adversity could take any form; the car breaks down, leak of roof, a major home fire that destroy your home, a vehicle accident that leads to a legal action and someone in the family becomes ill. Insurance offers you to transfer any type of risk which discourages you to carry out your business comfortably.
There are numerous types of insurance which are specially designed and introduced to cover various forms of risks with respect to one’s life and property. As regards the life insurance is a contract between an insured and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money usually called the benefits, in exchange for a premium, upon the death of the insured person. Depending on the contract, other events such as incurable illness or critical illness may also trigger payment. Life insurance has two major types; whole life and term life insurance, which offer the protection for the whole and a particular period of time respectively.
Let’s take a deep look on term life insurance; what is it and how it is beneficial for you. Basically, it is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. When the period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary. It is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time. Here are some key benefits of this policy which helps you to know the importance of this policy for you:
- Safe and Profitable Investment: It is a safe and profitable investment because the Insurance Regulatory and Development Authority (IRDA), the regulatory body, through the various rules and regulations ensures that the safety of the policyholder’s money is the primary responsibility of all stakeholders.
- Covers the Risk: Life today is full of uncertainties; in this scenario and term life insurance ensures that your family continues to enjoy a good quality of life against any unexpected event.
- Specific Needs or Obligations: It may be purchased to meet a specific financial obligation, such as repayment of a loan.
- Convertible: Some time term policies can be converted to cash value life insurance if your insurance needs change.
- Protect Mortgage: It acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unexpected event, the burden of reimbursement or repayment does not fall on the bereaved family.
- Less Expensive, Flexible and Easy to Buy: Buying a term life insurance policy is an affordable alternative to costly permanent life insurance. But affordability isn’t the only advantage. Term life insurance policies are also flexible, and easy to buy.
- Simple with Low Premium: Term life insurance policies are easy to understand. You pay a low, fixed monthly premium based on the term life insurance policy term length and amount of coverage that you choose. You can choose term lengths such as 10, 20 or 30 years, and life insurance coverage amounts anywhere from $100,000 to several million dollars.
- Invest Your Money in Your Own Way: With a term life insurance policy, you can invest your hard-earned money yourself, rather than having an insurance company invests your savings for you.
Consequently, it is an affordable way to protect the financial future of your loving family. You can purchase the amount of protection specific to your financial needs and circumstances. Furthermore, it is strongly recommended for all those who are still young and at the starting of their adult life, whose incomes are not high enough to pay for a whole life policy.