Various Aspects Of Term Life Insurance
Term life insurance as its name suggests offers predetermined payments to the policyholder after a fixed term. Once the fixed term is over there is no assurance of premium payment to the policyholder. In this policy the policy holder has to look out for other policy or pay extra charges after the lapse of given policy time. In case the person dies during the coverage period of the policy the benefits of the policy are given to his dependents.
oThe term deposit offers the best death coverage to the policyholder. When first launched this life insurance was the best policy, but now there are a wide variety of insurance policies available in the market. There is a permanent life insurance policy, the whole life insurance policy and the variable life insurance policy present in the market. These insurance policies offer a fixed rate for the rest of the policy holders life.
oThe term insurance policy gives the option of alternative fixed income to the family members of policyholder in case of his or her sudden death. Now there are certain insurance policies that are given the choice of withdrawing the whole amount or smaller portion of the amount from the policys final amount.
o is a profitable investment tool as the family members of the policy holder get a fixed amount of money after his death. The dependents of the insurance policy holder get a fixed sum of money with which they can meet the expenses of education, marriage and other such events of their lives. But experts are of the view that term insurance is not one of the best investment options for a longer period of time due to the clause of fixed rate of interest.
Then there is the level term insurance policy, which is very much advantageous. In this life insurance policy the premium remains fixed for the whole tenure of the policy. The time period of the term insurance policy is fixed and is usually 30, 20 or 10 years.
After the end of the policy term the policy holder can either renew the policy or look out for some other alternative. The term insurance policy is very much beneficial for senior citizens who look out for shorter term policies.
The term insurance policies are beneficial for the insurance firms as:
The insurance companies found this term insurance policy less risky, as if the policy holder does not die during the policy period; the insurance company has to pay very less to the policyholder on maturation of the policy.
The policy holder has the facility of withdrawing certain fixed amount of money even during the term insurance policys time period.
The policy is very much cheaper and it fits into the pocket of the policy holder easily.
This policy is very economical for both the insurance company and the policy holder.
Even experts are of the view that the term insurance policies are a better choice in comparison to the standard life insurance policies. Purchasing the term insurance policy instead of other available insurance policies is fruitful deal.
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