TERM LIFE INSURANCE AS ONE OF THE MOST IMPORTANT LIFE INSURANCE POLICY

TERM LIFE INSURANCE AS A TOOL FOR FUTURE SECURITY

LETS BEGIN WITH THE DIFFERENT TYPES OF LIFE INSURANCE

There are different types of life insurance policies, it will depends on your income, needs and duration you want the policy there are basically more than types of life insurance but primarily we have four which most people go for regarding their needs: we have the:

1.     Term life insurance

2.     Whole life insurance

3.     Guaranteed universal life insurance

4.     Accidental death insurance

5.     Guaranteed issue life insurance

6.     Simplified issue life insurance

          The primary four types of life insurance are the:

1.     Term life insurance

2.     Whole life insurance

3.     Guarantee universal life insurance

4.     Equity index life insurance

 TERM LIFE INSURANCE

These types of life insurance usually have a fixed period time let’s say 10 to 30 years. The insurance policy you  take under term life insurance covers you within the time frame or period and expires after his period. The term life insurance is usually less expensive compared to the whole life insurance. 

The specific period of time is the “term” of the policy, once the terms end the life insurance policy will renew on an annual basis most of which allows the owner of the policy to renew until about 90 – 95 years. but one thing you have to be cautions of is that most renewal life insurance policy increases as much as 200% yes, but some increases with a small amount while some many others just keep the premium the same but the face amount decreases. 

Term life insurance or term insurance is a life insurance that is not generally used for estate planning needs or charitable giving strategies but it is used basically for real or pure income replacement needs for an individual. Terms insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured of the premium are up to date and the contract has not terminated and doesn't give for a come back of premium money if no claims square measure filed. 

For example, car insurance will satisfy claims against the home if it is damage or destroyed, may be by fire whether or nit this event will occur is uncertain. If the policy holder discontinues coverage because he or she has sold the insured car or hoe, the insurance company will not refund the full premium.

In term life insurance, it is considered that death has to be  involved in order to get the  benefits, its primary advantage is that it provides coverage of financial responsibilities for the insured or his or her beneficiaries and such responsibilities may include but are not limited to :

1.     Consumer debt

2.     University education for dependents

3.     funeral cost

4.     mortgages

5.     Dependent care e.t.c. 

Having known what “term life insurance” is all about it is now time to also know the different types of term life insurance policies and they include:

1.  Guaranteed level term life is the most common because it is defined by yearly premiums that never increase during the life of the policy. Even though most policies have renew all clauses, these do not guarantee the ability to renew the policy because it depends on the statement issued in the policy. 

They mostly last for 10, 20 or even 30 years and an increase for longer term policies. One thing about this policy is that it is unique as the benefit of year one is the same as in year 30 with the some premium and coverage. This type of life insurance allows users or consumers to know exactly how much they will be paying them and how much will be left behind for a beneficiary. The process of buying a guarantee level term life insurance is no different from that of most other types of term life insurance.

Read more: Best Life Insurance Companies 2019

2.  Annual renewable term life insurance : this types of policy is on shirt term basis because it is been renewed every year for a defined length of time, when the policy is renewed the premium go higher, increase more and more after a period of 20 to 30 years.

3.   Return of premium term life insurance: as the name indicate “ return” this means that there is a refund to life insurance premium when the term period ends, assuming that the person insured is still living, it is much less expensive than a whole life insurance policy and has closed advantages.

4.   Decreasing term life insurance: as the name indicates, the claim becomes lower as the policy ages (become older). The death benefit decrease throughout the period of the plan. it is meant to insure people who currently have greater financial responsibilities that will decrease over time such as a mortgage or other expensive / large debts

5.  Modified term life insurance: a modified term life insurance policy is that kind of policy that uses an alternative payment structure to a standard life insurance plan but offers the same protection. This policy offers the opportunity to carefully plan your personal situation because it most likely have premiums that increase over time. This policy may help you afford the right coverage you need but requires a careful consideration of your own personal situation has been said above.

Also useful: Best Life Insurance Companies 2019

NEXT HERE: WHOLE LIFE INSURANCE