Term life insurance which is also known as the term assurance popularly is basically a life insurance that makes available the coverage at a fixed rate of the payments only for a limited period of time for which it is relevant. Once the relevant period gets over, the coverage at the earlier rate of premiums holds no further guarantee. You as a client then have two options. You can either let the coverage go or you can obtain the further coverage potentially via different payments or the conditions. In case the person whose life has been insured dies within the term period then the death benefit goes directly to the beneficiary. In this article we will provide you An Insight Into Term life insurance along and the pros and cons of Term life insurance.
Currently, term life insurance is the least expensive method to buy a substantial death benefit that too on the dollar basis of a coverage amount per premium for a specified period of time. This stands contrary to the permanent life insurance where the guarantee coverage is at the fixed premiums for the entire life of the secured individual until the policy is allowed to lapse. The former has nothing to do with the estate planning needs as well as the charitable giving strategies. It is strictly and purely for the income replacement requirements of an individual. This one simply fulfils the claims against the life insured only if the premiums are updated and if the contract has still not expired. It does in no case provide for the return of the premium dollars if one fails to file the claim.