Friday, September 28, 2012

Term life insurance

Term life insurance

Like the name suggests, term life insurance is a coverage offered over a period of time with an expected payment amount each month.  There are a variety of term life insurance options available offered by many insurance companies presently.  In this article we will investigate the ways to get a term life insurance and what exactly it consists of, which will also include the application procedures to wrap it up. 

Term life insurance
Term life insurance

Why term life insurance?

Simply consider the following; you’re in your mid 20’s or even 30’s, and are currently working in a secure job, have 2 children who are growing up, and are in good shape and health.  A decade passes by, and you’re keeping all the elements stable.  Suddenly, you fall ill and are diagnosed with illness that puts you in doubt of what is ahead and are burdened with heavy mortgage debt, Kids College funds yet not raised, and income for your family to sustain them.  That’s where your term insurance should technically kick in.  For we never know, what tomorrow holds.  Term insurance can be given in many different options.

The different term life insurance options

Technically, term life insurance comes in usually 3 intervals.  These intervals are a 10 year term, 20 year term, or ultimately a 30 year term.  They vary by increments of 10 years to offer the end user a good price policy in the premiums.  This helps the insured know that they will be covered for a good term if something were to happen.    Usually, the most common type of insurance is the one with the longest term, for protection in considered long term in today’s times. 

How do the payments vary in term life insurance?

As mentioned previously, when choosing a term life insurance, the longer your term, the less you pay.  That is usually the case for all insurance companies.  By recommendation, consulting with a financial planner will help you review your budget based on the specific needs of your family, health, and income required to operate in the future in case of emergency.  Through the assessment, you will know for what kind of term insurance you would want to apply.

Applying for term insurance

When it comes to application for term insurance, you would want to compare the different quotes offered by the many insurance companies associated in your country.  The best advice is to once again consult with a financial planner and go through exactly what your needs are, and then proceed with the application process. 
For more information about life insurance or inquiries, feel free to read my other articles that highlight different segments of insurance companies.  

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