Monday, May 10, 2010

Life insurance types – term policies

The selection of insurance products and offers you can choose from on the market is overwhelming. And choosing a policy to insure your life with can be tricky, requiring you to both evaluate your insurance needs and spend some time on comparing the offers you get from different providers. It's not just a possibility you can think of while buying insurance, it's a firm requirement that the product you want to buy meets your exact personal needs and can be adjusted to your budget, not the other way.


In contrast with continuous policies term insurance policies are designed to provide coverage only for a certain period of time, specified in the policy. A term policy will provide the benefits specified in it only if the insured person dies within the specified period. Besides, term policies do not have cash value accumulation potentials. So in case you are alive and well and your policy term expires, you won't receive any money. Another important aspect of term policies is that the premiums can't be fixed and it is likely that they will increase with the time passing. In order to make sure your rates are constant, choose a guaranteed level premium term policy that guarantees a fixed premium over the entire duration of the policy.


Advantages of term policies


Term policies are known to have the highest value for money you pay and the lowest price among other types of life insurance. That is why they are most beneficial for those families that have limited budget they have to fall into. These are some advantages you get with term policies:


Affordability


Term policies have the lowest premiums for the largest death benefits obtainable.


Simplicity


Term policies are the least complex insurance product for insuring your life on the market.


Competitiveness


Due to the simplicity of this product, there is a fierce competition between numerous providers offer term policies, which in turn allows effective comparison shopping when looking for a policy.


Flexibility


Term policies have the possibilities of "renewal" and "conversion". Renewal means that when the policy term expires you can prolong its duration, without buying a new policy. Conversion means that when the term of the policy expires you can convert your term policy into a permanent one, without buying a separate policy.


Waiver of premium


With term policies you also get an additional feature referred to as "waiver of premium". It allows you to halt premium payments for a stipulated period of time in case you are unable due to circumstances listed in the policy. Still, it is an optional feature that has its price.


Different time options


Term policies being a cheap life insurance options provide coverage for a period of time you feel appropriate. You can insure your life for a term of anything between one to thirty years, gaining death benefits if something happens to you during this term. It's a good way to plan your finances well ahead, making sure that such crucial things as mortgage or business loan will be paid out no matter what.


Different rates


There are many companies out there on the market that offer term insurance policies. Get life insurance quotes from them and you will probably get very attractive rates by shopping around.

3 comments:

  1. Life insurance needs vary depending on your personal situation.There are many types of life insurance
    products available to meet the differing needs of many individuals and families.Here the written details are very helpful to understand everything clearly.
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  2. Wow. You have explained this term very beautifully. Till now I have not read such an amazing description about life insurance. The thing that I knew about it is that one takes a policy according to his/her requirements and according to the budget. Greater the time period expensive is the policy.

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  3. Hey, very nice site. I came across this on Google, and I am stoked that I did. I will definately be coming back here more often. Wish I could add to the conversation and bring a bit more to the table, but am just taking in as much info as I can at the moment.
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