Term Life Insurance or Term assurance is term life insurance, which offers coverage at an agreed-upon rate of premiums over a specific period of time. The agreed-upon period varies from one term life policy to another. The most commonly used terms of an extended-term are ten, twenty, thirty and fifty years. There are also some insurance policies that offer coverage over a longer period, but with a lower premium amount.
Term assurance life coverage is considered a more flexible alternative to whole or universal life insurance. The advantage of a term life plan is that it gives the insured a chance to shift their investment and risk profile. Some factors that affect the premium rate include age, medical history, location of residence, amount of property owned, family health history and level of employment.
Most term life plans have a set age and/or death benefit at which a person is eligible to enroll. The insurance provider or insurance company pays the death benefit and collects from the insured. The term policy is considered an investment vehicle in case the insured dies before the policy expires. Premiums and benefit amount will be paid after a certain period as agreed upon. Insurance companies usually charge a fee if the policy is terminated prior to the end of the term.
Most insurance companies sell term life plans in their own brokerage, independent agents, or through online insurance brokers. In addition, there are several independent insurance companies who do not require an insurance policy to sell this type of life plan. Term life policies are suitable for individuals who do not desire immediate coverage and are seeking an inexpensive investment option. They are not advisable for persons who are considered high-risk.
Term life is an insurance policy which provides cover for a defined period of time. This insurance is beneficial for people who want to obtain coverage for an uncertain future, or for persons who wish to diversify into insurance products. Term insurance is typically purchased by those who are aged 55 years or older and who have no children or who do not have any type of health or financial plans for the future.
A term insurance policy can be purchased at a lower premium than other insurance policies. This is because term insurance is less expensive to maintain and to purchase. As an example, a term life insurance policy can be purchased at ten percent discount for five years if the individual is able to pay the premium within this time frame. and still remain employed at his or her current job. Term life is appropriate for certain age groups like the young adult, senior citizen, or disabled.
One major drawback of term life is that insurance providers do not have control over your investment profile; however, they may require you to provide them with a medical examination in order to make sure you are healthy enough to maintain your policy. The premium amount and other terms vary greatly depending on the insurance provider. You should find out what additional charges and costs might apply to your particular policy. It is recommended to get a few quotes from different insurance providers to compare rates and benefits.
The insurance company will need to know the names and dates of employment of your parents, spouse and children in order to determine your eligibility for coverage. Also, if you are married you need to provide a medical report from your physician in order to determine if you are in good health and qualify for a term life insurance policy. The premium amount also differs if you are in poor health or if you are currently experiencing a pre-existing condition.