Henry A. Maslow presented the concept of the kinds of needs a person has. The needs included the basic needs (food, shelter, air), security needs (the need for insurance), and other needs like need for self esteem and self actualization. The reason why these needs are mentioned here is to show the importance of the security needs. The security needs were being presented as the second most important requirement for any person. Thus, the importance of security can be judged from the fact that every living person needs to be insured. And, what is it actually that makes an individual insured? Well, it may be a danger related to an accident or even death, which is totally unanticipated. To meet such startling occurrence in your life, you need to get insured. But this insurance is linked with many important factors that you need to keep in your mind before opting a particular insurance policy.
What is Term Life Insurance?
The first kind of a policy is named as a Term Insurance. By term insurance, we mean an insurance policy which would be availed for a specific period, i.e. 1, 5, 10, 20 years or even longer. This definite phase, in a general sense, is called a term. When we comment that a term insurance plan would be available for an individual, only for an explicit phase, we are actually limiting its scope. So, what factors constitute a term life insurance? It is important to note that a term insurance plan is exclusively applicable for a death cover. Now, you may wonder what could be the utility of such a policy, only meant to cover the damages as a result of an individual’s death.
Benefits:
Well, a term life insurance plan provides you with the advantage of paying the minimalistic premium amount for availing it, as compared to any other policy that exists for providing the death covers to the individuals. It is the easiest and simple form of protection against unanticipated perils and dangers faced by an individual in their lives. So, what does a term life insurance plan protect us from? By paying an annual or a monthly premium, this insurance plan helps you to run your household in lieu of income loss, due to death, accident, or a joblessness. The policy covers your short-term financial goals and debts, if any. Meanwhile, it offers a long-term assistance to pay off your mortgage, or fund for your children’s college education. Last but not the least, a term life insurance offers additional insurance coverage, during the critical years of raising a family.
Features:
Renewability and convertibility form the backbone of a term insurance plan.
Convertibility allows you to exchange this policy for a permanent life insurance plan of an equal financial cover, without undergoing a medical examination. Thus, you can easily convert a $50,000 term insurance plan into a policy worth $50,000 cash, without responding to your medical history, or ailing health, and make great savings. You can convert your policy before the age of 65 years.
Renewability allows you to expand your coverage for additional policy terms, without undergoing medical check up. It serves you well in your golden years, or when you fail to meet the company’s new policy rules. You can renew your term after crossing 5, 10, or 20 years of policy life.
