Term Life Insurance

CONVERTIBLE TERM LIFE INSURANCE

Untoward incidents such as theft, accidents, natural calamities or even death could cause unimaginable amount of damage to life. So instead of being clueless about the next course of action one could opt for an insurance plan which best suits the need. However choosing the right insurance could be a challenge. Given the competitive market for insurance products it is imperative to first know the various options available. To start with let us understand the meaning of a Term Life Insurance. As the name rightly suggests term life insurance is a for a fixed period of time. The term is mutually agreed upon by the insurance provider and the insured as per the agreement. The level of periods could be for 1 , 5, 10, 20 yrs and so on. A term life insurance is a pure death benefit, wherein the beneficiary nominated by the insured would avail of all the benefits after the death of the insured in that stipulated contract term.

Term life insurance could be broadly classified into two-

>Annual Renewable Term Life Insurance- In this form of insurance premium is paid for annually for an year’s coverage. If the insured decides to extend the policy then it would automatically call for an appreciating rate of premium to be paid each year.

 >Level Term Life Insurance- Unlike the Annual Renewable Term this type of plan would guarantee you the same rate of premium to be paid for the decided term of the policy.

Convertible term life insurance is an excellent feature in a term life insurance. A term life insurance we all know caters to a certain period securing the financial future you and your family. But a convertible term life insurance takes you a step ahead. It guarantees life insurance for a period of 20 yrs which could be issued at the ages (18 yrs- 39 yrs) and (40 yrs- 65 yrs). Premium however changes and renews each year. Keeping in mind your changing needs you  can easily convert a term life insurance to a whole life insurance policy (issue period as discussed as earlier). Whole life insurance would cover the life of the insured and policy would be paid out at the end of the policy term, thereby it imposes a cash value on its takers. A Convertible Term Life Insurance in other words satisfy your temporary and permanent needs. The best to secure you and your family’s future!