Term life insurance is life insurance that provides protection at a
fixed rate of payments for a specific period of time, the relevant term and
pays benefit only if you die during that period of time. If the life
insured dies during the term, the death benefit will be paid to the
beneficiary.
One of the biggest advantages of term insurance is
its lower premium as compared to endowment insurance because term insurance
does not acquire any cash value and at the end of term, policy will not have
any value. In term insurance you are paying for death benefit, if you die
during the term then benefit will be paid to the beneficiary.
Term insurance is a good option for young people
with high level of protection of life with low premium. In this way they can
ensure family’s financial independence in the event of your unfortunate demise
or critical illness. One thing must remember while taking term insurance that
term insurance should be taken as early as possible and have long period of
time or term. So that you have to pay
lower premium. If you take short period of time or term and after end of that
term, you choose to take term insurance again then you have to pay more premium
as compared to previous for similar amount of coverage.
