Sunday, February 25, 2018
You are here: Home >> Default >> Life Term Insurance
Life Term Insurance

Life Term Insurance

Life term insurance is a life insurance, which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. It is the most affordable way to protect your family’s financial security if something happens to you. It replaces your income in the event of your death, and ensures that the ones who depend on you can support themselves financially in your absence. Men and women with good health in their mid 30s to 40s can purchase hundreds of thousands of dollars of coverage for under a dollar a day.

Types of Life Insurance:-

In general, a life insurance policy pays a monetary benefit to the named or designated beneficiary upon the death of the insured. Popular types of insurance include:

  • Whole Life Insurance
  • Variable Life Insurance
  • Term Life Insurance

While part of the premium on a whole life or variable life insurance policy goes into an investment fund, no part of the premium on a term life insurance policy is used for investment purposes. In short, the premiums in a term policy pay for the insurance.


Term life insurance is often a reasonable coverage because it offers protection to the insured for a specific number of years. The objective may behind while you want to purchase this policy too:

  • Get maximum coverage at an affordable and reasonable price
  • Cover specific financial responsibilities like a mortgage or college expenses
  • Supplement a permanent policy or work policy
  • To cover short-term debts and needs

Cost Effective:-

Term life insurance policies are by far the cheapest and cost effective form of insurance. For example, a 30-year-old, male with good health, may pay $2,500.00 yearly for a whole life insurance policy with a death benefit of $250,000.00. However, the same policy in term form may only cost $300.00 per year. However, the whole life term insurance premium never increases over the years and also carries a cash build-up which can be used or borrowed at any time. The premiums on the term policy will increase as the insured grows older.

Favorable to Consumer:-

Mostly consumer favors life term insurance to provide their families with the security needed, and then use the additional funds they would have paid into others like a whole life or variable fund to make investments of their own choosing. Accordingly, they too are acquiring life insurance and using funds for investment purposes, but they’re simply using their funds in a different way, a manner that suits their personal needs.

Terms or Models:-

The policy will remain in effect for as long as the premiums are paid. Term policies come in many varieties. However, the most popular models are annual, 7-year, and 10-year policies. Annual term policies carry a premium that increases slightly each year, while 7-year and 10-year term policies carry premiums that remain the same for 7 or 10 year period at a time.