What is the term life insurance definition?

Term life assurance policy provides financial protection to the insured’s beneficiaries if he dies during the term period of the policy. Term life is insurance for life and has a specific term period during which the insured’s beneficiaries can claim if he dies within this period, otherwise the policy expires. If you want to know more about term life insurance, this article provides a detailed account of how it works.

How term life insurance works

Specified term life period Term life assurance cover has a specified term period of time during which the insured has to die so that his dependencies can claim from the policy. Otherwise, the policy expires. Fixed premium Life insurance premiums payable to this policy are fixed and the policy benefits are predetermined. No premium is refunded after the policy expires. No medical examination required Medical examinations and medical history are not necessary when taking up an insurance term life policy.

How to get life insurance cover

Term life assurance quotations are obtained online from various life assurance companies. Choose the best life insurance rates. Moreover, you can buy insurance life term online.

Advantages of term life insurance

Form of investment Term life insurance is a form of investment on behalf of your dependencies who will claim from the policy after your death. Source of income It is a source of income for your beneficiaries to pay for their day-to-day expenses like accommodation, food and school fees if you die during the term period of the policy. This obviously provides a peace of mind. For future planning Term insurance policy allows you to easily plan for your future and you can budget for the premium contributions because they are fixed throughout the life of the policy. It is also relatively cheap as compared to other life insurance policies. The qualification process is easy The qualification process is very easy because no medical examinations are required. The insurance cover is suitable for low income earners who cannot afford to take other life assurance policies like insurance whole life or life insurance endowment.

Disadvantages

The policy only pays if you die during the term period of the policy and the premium is non-refundable if the policy expires. The insured may choose to renew the policy. However, it will be based on a new policy arrangement, new terms and new premiums.