The insurance has been born in recognition that people need financial assistance when certain eventualities in life happen such as disabilities, sickness, accidents and deaths. In cases of temporary or permanent disabilities, the proceeds of an insurance represent a way to provide for the family. By paying the a reasonable premium, one can get a term insurance policy which comes with benefits. 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 a term insurance policy?
It is policy or coverage for a life insurance that is designed in exchange for a premium at a preset rate to be paid over a period of time or term. If the insured dies within the term, the benefit will be given to the beneficiary.
It is not therefore surprising that insurance is regarded by those from the working class as the most affordable way to get a substantial benefit upon the death of the insured. Regrettably, once the term expires, the protection of the insured expires too.
These days, if the insured lives out the term, it is common for insurance companies to offer certain attractive options Certain companies can offer a new term policy upon the expiration of the old term with a similar premium especially if the client has a good premium payment record. There are also some insurance companies that refund parts of the insurance premium.
In contrast, term life policy premiums are frequently inexpensive compared to whole life or universal life insurance plans. 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 drawback is the fact that the cash value is lost with the expiration of the term. It is akin to stashing cash that one never gets to redeem by the end of the term.
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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Warren Knight is a featured and syndicated expert columnist on the topic of Business and Finance for the Secret Enquirer. For more Business and Finance tips and articles, visit http://www.SecretEnquirer.com now.
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