Categorized | Finance and Money

Giving Term Insurance Policy An Innovation

Posted on 19 April 2012

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The insurance can be traced back from the admission that many people need a fallback when the inevitable happens like diseases, accidents, disabilities, and deaths. It can therefore be regarded as a way to provide for the family in case of temporary or permanent incapacitation. Buying a term insurance policy comes with benefits in exchange for the payment of premiums. The premiums are invested to earn a return that is, in principle, the source of the benefits the company will pay the family of the insured when the inevitable happens.

What is the meaning of  term insurance policy? It is a life insurance that has been created to offer policy at a premium that has been predetermined for a definite time or term. The death of the insured within the term will mean a payout of the benefits to the beneficiary. Hence, this kind of insurance is the most feasible way to avail of a substantial death benefit at an affordable premium dollar basis for many who earns less. Unfortunately, when a term insurance expires, the insured gets nothing in the end.

These days, if the insured lives out the term, it is common for insurance companies to offer certain attractive options Clients who have commendable premium payment histories are usually offered a new term policy once the old term insurance ends with the same premium rate. Some companies offer a refund of the insurance premium at the end of the term.

Quite commonly,  whole life or universal life insurance plans,  are more expensive and term life policy premiums are a lot cheaper. Financial benefits can be as high as hundreds of thousands of dollars out of a premium ranging from $30 to $50 a month. This low cost of term insurance accounts for its popularity as a way of family protection. The only disadvantage is not being able to build cash value out of it upon expiration of the term. It is like a savings that has an expiry date that is not practical in that respect.

There are many choices for people who want to purchase a term insurance policy. Find out about the fine details, get quotes from Internet, compare and pick the one that fits your needs. There is no doubt that the whole or universal life insurance is still the most ideal but a term insurance is the most feasible way to get the security that you need.

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