Term life Insurance is also known as Term Assurance. It is a type of Individual Life Insurance Coverage that you pay at a fixed rate for a specified amount of time, and that maybe from one year to 30 years. After the relevant term or period expires, guarantee for coverage at the previous rate of premiums also expires. The client should therefore decide whether or not to forgo coverage, or to obtain further coverage with different payments andor conditions. Some policies may be written to allow you to renew an ended contract for another term without having to show evidence of insurability. In other words, you will not have to prove that you are still healthy. Other policy or options can cover you against disability or critical illness, or provide a waiver of premiums in case you cannot work. Another popular option, or rider, will even return your premiums paid, if you survive the term of your insurance contract.
With Term Life Insurance, benefits are paid to the beneficiary once the insured dies during the term. Its primary use is to provide coverage of financial responsibilities, for the insured that may include but may not be limited to consumer debt, college education for dependents, dependent care, funeral costs and mortgages. This kind of Life Insurance is generally chosen over Permanent Life Insurance because it is less expensive. Seek Financial Advice from Insurance Professionals.
A Term Life Insurance Policy is life coverage only that the face amount of the policy gets paid to the named beneficiary upon death of the insured.