Things You Need to Know About Term Life Insurance

  • Term life insurance is a cheaper alternative to whole life and variable life insurance policies.
  • Except in the case of a Return of Premium Term Life Insurance, it accumulates no monetary value, i.e., you don’t get back the money you have paid as premiums, at the end of the policy period.
  • The policy expires at the end of the nominated period, which can be between one and thirty years. If the policy holder dies within that period, his beneficiaries are paid the insurance in full.
  • You will have to undergo a medical check before your premiums are decided. If you are old or suffer from any serious illness, your premiums are likely to be high.
  • A few insurers allow you to renew your policy at the end of the term, but the premiums are likely to be higher, a rise that is attributed to the increase in your age.
  • Some policies provide policy holders with terminal illnesses accelerated benefits. The premiums on such policies are higher than normal.

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June 28, 2006 in Information | Permalink




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