Term Life Insurance

Fixed Term Life Insurance

Insurance is an indispensable tool when it comes to safeguarding you and your life against certain unforeseen circumstances which could cause inevitable damage to existence. Some events in life are just uncalled for. For e.g. thefts, accidents, natural calamities and even death. Such incidents could leave you stranded about the next course of action. That’s when insurance comes into play. Today’s market a wide range of insurance products to choose from. According to your premium paying capacity and your needs you could opt for a plan accordingly. The main aim of an insurance is to offer a complete protection to life.

Lets talk about a term life insurance. As the name rightly suggests term life insurance is for a fixed period of time which is mutually agreed upon by the insurance provider and the insured. It serves as a pure death benefit, where the benefits are paid to the beneficiary if the policy term witnesses the insured’s death. The best part about this form of insurance is that it imposes no cash value on its takers. And like most of the other insurance plans it gives you an option to either continue with the plan or drop the plan as per choice.   

Term life insurance can be broadly classified into two-

>Annual Renewable Term Life Insurance- premium here would be paid once annually for a coverage of one year. If the policy holder decides to extend the policy then he would be liable to pay the appreciating rate of premium.

> Level Term Life Insurance- Unlike the annual term life insurance this policy would guarantee the same rate of premium for the fixed term of as per the policy.

 The most common and inexpensive form of insurance in a Term Life Insurance is Fixed Term Life Insurance. In this if the insured survives the policy term then the amount will be paid out to him only on his death it could be even beyond the policy term. it works out cheaper because the lump sum is paid out once. Fixed term life insurance also comes with additional benefits like if the insured gets diagnosed of a terminal illness during the policy term the lump sum would be paid off to him immediately. The term can be decided by the taker according to his financial conditions. This form of insurance works out to be one of the most inexpensive deals in the market.