Term life insurance is a life insurance which provides coverage for a limited period of time. After that period is over either he can drop the policy or he can continue the policy. If he dies during the term, the death benefit will be paid to the beneficiary. Term insurance is considered the least expensive compared to other insurance policies. Term life insurance is a temporary insurance because it does not have cash value, only death benefit. If a person does not die during the tenure, beneficiary would not receive anything and the coverage ends. If the policy holder stops paying premium, the policy lapses. A lapsed policy does not fetch any benefit. Term life insurance requires you to pay the premiums regularly to maintain policy coverage. While buying a term insurance policy just think that you will not get cash value which you may need after 10 years. So just think for a moment.
Families who have young children do need a life insurance. If both the spouses work, loss of any one income will definitely cause economic hardship like paying for the children’s education. If only one spouse is working, and he dies then to run the house, insurance is needed so that other family members do not suffer. If a person is single or do not have children then also he/she needs life insurance to protect the partner or surviving family members. Premium amount is lower compared to pure insurance. This policy will cover specific needs of the family like mortgages or needs of the children that will disappear in time. Some of the reasons why people purchase term life insurance are estate planning, standard of living will not be affected for dependents, protection of spouse until the retirement years, payment of mortgages or other debts. You can also get rider facility like child, waiver of premium or accidental death. Rider is an attachment or amendment to an insurance policy that changes the policy in some way.
Different types of term insurance are decreasing term, increasing premium term life, ten year level term life and five year level term life. The benefit of decreasing term is that if the insuree dies unexpectedly then this policy will pay off his mortgage. Another benefit is that low premium has to be paid, which makes it an affordable policy for the buyer. Five year level term life means that the face value and its premiums are the same and upon the death of the insured within this period, the beneficiary will receive the proceeds paid by the life insurance company in one lump sum. In ten year level term life the face value and its premium are the same and the death benefit is ten years, the buyer can renew the policy upon maturity but with higher premium. In 20 year term life, the premium amount is the lowest, but it does not have any cash value. The buyer will not get anything at the time of maturity of the policy. In California, health insurance companies are blue cross, Kaiser Permanente, blue shield, Aetna, nation wide group etc. They provide all types of insurance like health plans, dental plans, group health plans and term life insurance. Article keywords: