Term insurance is provided for fixed periods at a fixed rate. For a specific period, the specific amount of insurance is paid to the beneficiary after an incident like death. Once it expires, the policy no longer remains under the previous rates, and several different plans are available for different payment conditions altogether. In case the policy matures, or the period of the policy expires, the amount of coverage stops.
The period of insurance depends on the type of plan or how beneficiary as how he/she wants to opt. It is not necessary that coverage will be given under every set of death series. Deaths such as natural death, suicide, intoxication, death via HIV, death by some natural calamity are not considered under the insurance.
Benefits of Term Insurance
There are many term insurance plans based on the requirement of the beneficiary. Hence, one can always reach out to the policy company and look for the best plan he wants to opt. There are several benefits of term insurance plans. They are:
How to Choose the Best Term Insurance
Now the question arises as to how to choose the best Term Insurance plans keeping in mind your dependants and financial goals. So, while coming to the term insurance, different companies can have different plans.
Your choice should be dependent on various factors such as:
Payment of Premium and Surrender details
Once a person is 18 years, he can get term insurance for himself. A nominal term insurance plan can also be converted to lifetime insurance plan in which the premium will be automatically covered for life, for about 100 years. In case a person misses to give the premium in a specific month, the service providers generally give agrace time of 30 days.
If a person wants to surrender the term insurance plan, nominal charges are deducted, and the person can exit the plan. Also, in the cases where the policy distorts, and it is not renewed on time, the coverage cannot be expected.
Term insurance has to be adopted because this insurance covers everything based on the plan opted by the person. If you are looking to buy term insurance for the first time, do in-depth research on the policies available in the market and compare their prices.