Term Life Insurance
Life is full of surprises. Protect your family’s tomorrow with our term life insurance plans.
What is Term Life Insurance?
Term life insurance is a form of life insurance policy that gives financial protection for a specified period, which is called the “term.” Usually, the term lengths vary and can go from 10 to 30 years. The unique feature of term life insurance is that it disburses the death benefit to the beneficiaries when the insured person dies within the policy term while whole or universal life insurance does not earn any cash value nor have any investment options associated with it.
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How Does Term Life Insurance Work?
The design of term life insurance trunk is meant to provide monetary cover for a defined time limit or “term”. Normally, policy terms vary from ten years through twenty up to thirty years, although various other options may exist depending on the insurer. For the duration of the selected term, regular premium payments are made by the policyholder. If death occurs within this time frame, the beneficiaries specified in the agreement will receive a sum of money which was foretold before hand called as death benefit.
The Safety Net
Imagine term life insurance as a safety net for your loved ones. You pay a regular fee (premium) for a specific period (term). If something unexpected happens to you during that time, the insurance company provides a lump sum payment (death benefit) to your chosen beneficiaries. This helps them financially cope with your absence.
The Financial Promise
Term life insurance is a contract between you and an insurance company. You agree to pay a set amount (premium) regularly for a specific period. In exchange, the insurance company promises to pay a predetermined sum (death benefit) to your beneficiaries if you pass away during that term. It's like a financial promise to protect your family's future.
Types of Term Life Insurance
Level Term Insurance
- Fixed death benefit throughout the policy term.
- Premiums remain constant during the policy period.
- Best suited for individuals with consistent financial obligations.
Increasing Term Insurance
As the years go by, the death benefit keeps on going up. This is most often connected with inflation or certain phases of life. The premiums go up too to cater for the larger cover. It is ideal for young families who are expecting more financial responsibilities.
Term Insurance with Return of Premium (TROP)
Returns all premiums paid if the insured survives the policy term. Higher premiums compared to standard term insurance due to the return of premium feature. Suitable for those seeking life insurance coverage and a potential return of their invested money.
Decreasing Term Insurance
Death benefit decreases over time. Premiums typically decrease as well. Often used to cover mortgage payments or other debts that decline over time.
Convertible Term Insurance
Option to convert the term policy to a permanent life insurance policy without evidence of insurability. Conversion typically comes with higher premiums. Ideal for individuals unsure about their long-term life insurance needs.
