If we compare term insurance with another forms of life insurance then it can be seen that term life insurance creates no cash value but is the original version of life insurance and can be termed as best insurance protection. Term life insurance companies provide life insurance coverage for a specific term, and if the insured dies during the term, the death benefit goes to the nominated beneficiary.
If there is a temporary need for life insurance and the financial protection is also desirable, term life insurance can be the appropriate option. The term insurance companies also offer the option to convert some term life insurance policies into permanent policies.
One can find these options while looking for a term insurance policy:
Annual renewable term version: In this version premium is paid for one year coverage but the policy continues each year for a specific number of years
Level Term Life Insurance: Here premium remains same for specific number of years. Generally the terms are 10, 15, 20 and 30 years.
Term Life Insurance with Return of Premium: this is another form of insurance that is currently becoming popular. Though it is named as term life insurance, this kind of policies may be named as modified version of permanent life insurance because it is not a pure death benefit.
Some important factors which one should decide before buying a term life insurance policy are:
Decide your coverage: One should take this vital decision after estimating the amount of income his/her survivors will need or the amount of other life insurance available to the would-be insured
Choosing the appropriate term ranging from 1 to 30 years
The cost of life insurance depends on the number of risks, the would-be insured wanted to cover.
This should be remembered that some term life insurance with return of premium, allows loan.
Some Term Insurance Companies:
Max Newyork Life
Tata AIG Life