Term life insurance policy is a form of life insurance. Here the insured person enjoys insurance coverage for a definite period or term which generally consists of something between 10-30 years. Like some other life insurance policies, term insurance policies also pays a good amount as claim to the nominated beneficiary if death occurs, before the policy matures. There is enough flexibility offered by the term life insurance policies. One can choose, how much to spend on coverage, at different stages of life, according to the needs. In such situations, term life insurance policies are the sensible choice. The situation mentioned above may be of different kinds like:
Young couples under huge debts: Young couple needs life insurance when planning for their career, planning to buy a house or expecting children
Short term needs - There are persons who need short term insurance coverage for 10-15 years
People approaching retirement
The premium of term life insurance depends on your financial responsibilities. If somebody does not have any dependents, he would need insurance coverage for debts. A family man has to think about the requirements of his family and would require a wider coverage.
There are a few more things to consider about term life insurance policy:
Term life insurance definitely provides with the lowest initial premium payment, but there is also no cash value like other life insurance policies
Term life insurance policies runs for a definite period and once the term of the policy runs out, one must buy a new insurance policy at higher premium rates if he/she wants the coverage to continue
With each renewal, the premium rates becomes high and if it has been renewed several times, the premiums are quite high.
Some important insurance companies:
California Life Insurance
Prudential Life Insurance
ICICI Pru Life Insurance
Max New York Life
