|
Term life insurance provides life insurance cover over a specific time period or ‘term’. It covers the beneficiary over an agreed term so that in the event of their death during the agreed term, a death beneficiary payment will be paid out. This is to ensure the financial security of loved ones in the event of a death. There are many different instances in which a person may wish to take out this cover, and it is designed in order to protect those left behind from the loss of a primary income earner. Many people choose to take out term life insurance when the take out a mortgage on their house. This ensures that is the mortgage holder should die during the time of repayment that the remaining family would not suffer financially by having to find the money to pay it off themselves. This often means that the length of the term life insurance is the same as the mortgage repayments. Cover is also often taken out when someone is planning to start a family. The cover is designed to protect those left behind from financial difficulties as a result of the death. The premium covers costs such as mortgage repayments, loans, dependant care, college education for dependants, and funeral costs etc. This means that during the time of cover if you were to pass away and you left a wife and child, they would not have to try and find the money to pay for the mortgage or loan repayments, and there may be a fund accessible for college tuition etc. This can be a great comfort to those who have a high cost of living and are currently earning a large salary. If this salary was to suddenly disappear and there was no insurance cover, the family left behind would struggle to maintain living in the same house etc. Term life insurance, as already mentioned covers the client for a fixed time period only. This means that if the cover ran out and the client died the next day the policy would not be liable to pay out. The cover is only valid during the specified dates, unlike full life insurance cover. If you are taking out level term life insurance, then the payout on the cover is fixed at a specific price. This means that if you should die at any stage during the time period then the amount paid out will always be the same; which is a fixed amount agreed in the terms at the start of the contract. The insurance will usually state that payments will only be made out due to a natural or unplanned death of the insured party i.e. If the insured party took out insurance and then went on to commit suicide, this would not be covered under the terms of the policy and it would then be void. However, all policies have a contestability feature in them whereby individual cases can be looked into. This means individual circumstances may dictate whether payments are made in such cases as a suicide that has taken place 5 years into a policy. My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn't have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.
Related Articles -
Term Life Insurance, Term Life Insurance Quotes, Life Insurance, Life Insurance Quotes, Life Insurance Rates,
| 
