A policy that gives you and your loved ones protection from any unexpected calamity is a life insurance policy. Being known to the fact that if someone happens to you, your family will stay strong financially down the road will put you at ease.
WHAT IS TERM LIFE INSURANCE POLICY?
The most easily to understand as well as the most affordable is the term life policy. In 5-years’ time, the insurer specifies the increments as well as the contract’s length. In this policy several flexible options are also available. This policy provides protections and also does not complicate things with extras
Term life insurance is affordable because it provides protection for specific time. You may opt for term life insurance if:
- You want to get maximum coverage at an affordable cost.
- You want to cover financial problems like mortgage or tuition expenses.
- Supplement either a permanent or a work policy
- Simplified Issuance of Term Life Insurance
If the coverage amount is below £100,000, simplified issuance of term life insurance is being offered. This requires no medical certification or any exam and approval on the very same day. This policy can also be bought over the phone in no time.
WHAT IS LEVEL TERM LIFE INSURANCE?
If coverage amount reaches up to £100,000 or more, term life insurance policies with guaranteed premiums are offered. These premiums do not increase over the length of the term. This can be opted for at any time and over the phone.
HOW DOES TERM LIFE INSURANCE WORKS?
A term can be selected by the insurer of either 10, 15, 20 or 30 years. A guaranteed lump sum amount of money is given to the beneficiary. The premiums in term life insurance policy remain the same over the length of time. A number of extra benefits are also available that would help in the coverage of other needs.
However in most of the cases of term life insurance, the insurance company never pays out because the insurer usually outlive the term and the policy expires. However, a rise is term life premiums with age is effective whereas the premiums offered by whole life premiums stay steady. Late in life, they can turn out to become cost-prohibitive.
WHAT EFFECTS TERM LIFE INSURANCE RATES?
Once it has been chosen to take term life insurance policy, the actual cost of the insurance is based on many factors. The age and health add to be the biggest cost factor. The following factors effects the cost of term life insurance policy:
- Smoking habits; Smoker/non-smoker494
- Family history (in case of any disease)
- Lifestyle (high-risk activities)
- Work environment and place
- Home place
This life insurance policy acts a lot like an auto insurance making it much easier to be understood. Like insurance paid for a car. The premiums are paid as long as the insurer desires to be covered. But if the insurer passes away the company holds on to the money and provide nothing to the beneficiary.