Term Life Insurance
Health Insurance
Term life insurance
Term life insurance is a type of life insurance in which the loan is given for a fixed period of time, but if the insured person dies within that period, the death benefit is given to his successors. This insurance is also known as pure life insurance. The main purpose of taking term life insurance is to provide life cover for the policyholder and financial security for his family. Once the term life insurance is over we can renew it or convert it to permanent life insurance.
Key Takeaways:
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Term life insurance provides coverage for a certain period of time or a specified term of years, such as 10 years,20 years, or 30 years.
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The death benefit will be given to beneficiaries If the insured person died in that certain period.
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You can convert term insurance to permanent insurance, depending on the insurance company.
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Term insurance is based on a person's age, health, and life expectancy.
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Many term insurances provide level premiums during the life of the insurance.
Why do we need it?
Term insurance provides you coverage for a certain period of time. If the insured person dies during the period of time and the policy is active or in force death benefit will be paid. You need it to provide financial security to your loved ones in your absence.
Types of term life insurance
AmityFin.com has many types of term life insurance that can be taken according to need and demand. Term life insurance is offered for a fixed period of time.
Decreasing term Or Mortgage term: Decreasing term insurance provides a death benefit that gets smaller each year, according to a predetermined schedule decreasing premiums over time. such term life insurance is mainly used to protect personal assets or small businesses. This type of insurance is much cheaper than other insurances and sometimes insurances require a witness because if the person who took the money dies while the loan is owed, then the witness pays his money. Decreasing life insurance is also known as mortgage life insurance.
Convertible term: convertible insurance is a type of insurance that allows an insurer changes its term insurance to whole life insurance or universal insurance without going through any medical test again. But you have to take this opportunity before the term insurance period expires and it charges higher premiums.
Increasing term: An increasing term is a type of insurance when the death benefit increases with the time of each year. It can protect your death benefit from inflation. As time passes, it gives you extra security for you to cover growing expenses but the monthly premium may or may not increase.
Annual renewable term or a yearly renewable term: If insurance is needed for a short period of time then annual term insurance is best which has a term of 1 year. The insurance can renew every year without taking any medical requirements and Premiums also increase with age. But it is not suitable for most situations.
Level term: The level term is a type of insurance where the death benefit and premium remain the same unless the policy is changed, regardless of whether the insured person passes away. If he dies before the end of his term, a pre-agreed cash payment will be made to his family.
What are the benefits of term insurance?
In your miserable time of life, one’s needs financial support most. And term life insurance provides you with that financial support. It is a way to be with loved ones at every step of providing their life.
1. Affordable premium: One of the benefits of term insurance is its affordable premium. If we compare term insurance with other life insurance policies, term insurance gives lower premiums that you can easily afford.
2. Easy to understand: Many people do not understand specific terms about various life insurance policies. But one of the features of term insurance plans is that its term is very easy to understand.
3. Different death benefit payout options: Term life insurance helps your family member to receive your monthly income about your lumpsum amount as the death benefit.
4. Income tax benefits: tax benefits are one of the best advantages of term insurance. A term insurance plan is tax deductible while you pay for your premium and your payouts also come with tax exemptions.
5. Return of premium option: On the insurance term if you chose the option for return of premium option then you can get maturity benefit under the term insurance plan. But opting for this option will cost you a higher premium. And you will return the entire premium without any taxes, rider premium, and modal amount paid on the premium.
6. Critical illness cover: There are times when you are diagnosed with a critical illness and you can pay for the necessary treatment without consuming up your savings.
7. Accidental death benefit coverage: Accidents may occur anytime and may lead you to death or dismemberment. To get the death benefits you have to add some rider in the insurance term.
There is no investment component in term life insurance. It covers your life for a fixed period while you pay the premium continuously.
Bottom line:
There is no guarantee of life so taking term insurance secures the financial future of your and your family. AmityFin.com provides you with the best term insurance. It not only provides you with financial security but also gives you the option to protect yourself from critical illnesses such as cancer, heart disease, etc.
