What is term life insurance?

A term life insurance policy lasts for a fixed period, such as 10, 20, 30 or 40 years. The best thing about term life insurance is the price, but the downside is that you will be uninsured after the term ends.

Life insurance policies end with surrender or maturity, not with death, if the insured outlives the term.

Why do we need it?

An affordable form of life insurance can ensure the financial stability of your loved ones after your death, as well as providing you with a good level of security. It will give your family member (beneficiary) a lump sum tax-free benefit they can use for paying taxes, mortgages, loans, and other debts. We can help you determine your term life insurance needs and provide you with the most appropriate policy.

Term Life Insurance vs Permanent Life Insurance.

Coverage for defined period – Comparatively cheaper.

Nowadays, no money back rider is available in term plans – Convertible to permanent and renewable as term plan.

Amount of coverage may decrease over time or can stay level – Coverage for life.

Expensive than permanent coverage – Money back, cash value and investment options.

It is already for whole life, so no need to renew or convert. Coverage may remain the same or increase‌ as per contract.

Types of Term Life Insurance.

There are multiple types of plans, even though it appears to be one.

Annually renewable term:- In the beginning, the premium is lower, but it increases as you get older. Renewable terms are convenient for managing budgets, and if we calculate the total premiums, it is almost similar to level terms.

Decreasing benefit term:- The benefit amount decreases over time. So these plans are an excellent alternative to mortgage insurance, credit coverage, and loans.

Convertible to permanent: – If you change your mind, even after up to five years, you can convert to permanent life insurance. Some vendors carry forward your paid premiums, as per policy provisions. We have excellent offers on such plans.

Riders on term life insurance.

Riders are additions to the policy. In the other words, we can bundle some benefits with the plan. Some most important term life insurance riders are:-

Waiver of premium:- In case an insured of the policyholder becomes disabled, this rider waives the premiums. A waiver of premium rider is available to both policy owners and insureds. Please read the terms and conditions carefully.

Guaranteed insurability rider:- This rider allows you to purchase additional coverage without further medical questions. This rider is useful in all life events, such as marriage, birth of your child, change in your income, and ageing.

Accidental death rider:- This is very useful for breadwinners. It can double the death benefit in case the insured dies in an accident. This rider is the best choice for those working in accident-prone environments, such as truck drivers, construction workers, or those working in mining or heavy metal processing.

More Riders.

Family income benefit rider:- In the event of the death of the insured, the family would receive a steady income stream.

Accelerated death benefit rider:- Upon diagnosis of a terminal illness, the insurer may pay a living benefit amount.

Child term rider:- This rider offers great coverage for the entire family. If a child passes away before a certain age, the insurer will pay the death benefit. Otherwise, they can convert to a permanent plan, as specified in the terms and conditions.

The return of premium rider is almost no longer available; however, some insurers still offer term life insurance with the return of premium. Upon maturity, the insurer returns the whole or partial primum.

Long-term care rider:- The insurance company can pay a monthly benefit if the insured has to remain in long-term care or receive LTC at home.

Do you need term life insurance? Click here to buy now. Talk to us today and protect yourself.