Term Insurance Basics
Have you thought what will happen to your dependants and your responsibilities if something untoward happens to you? What will happen to your children’s education? Where will your family live, what happens to the loans that you have taken, how will they fulfill their daily requirements?
A low cost life insurance with high risk cover, term life insurance , might just be the solution. The purpose of term insurance is to replace your income in case of an eventuality. If you have adequate term insurance and such a situation arises during the specified term, your life insurance amount will make it possible for your family to have sufficient funds to take care of your basic responsibilities and remain self sustaining. Term Insurance is taken for a fixed duration generally up to 30 years or up to the maximum renewal age specified by the insuring company. It provides coverage till the time you maintain the insurance and ceases if you outlive the term. In its true sense, there is no cash value acquired on a term insurance plan (without return of premium ) unless it has a return of premium condition attached.
Buying a term insurance is almost hassle-free except that you might be required to undergo a medical examination to assess your health condition. Also, it is a good idea to consider some basic points of references from different companies offering same or similar term plans.