Life is unpredictable and one cannot foresee what can happen in future. Death, despite being inevitable is as unpredictable as it gets and you never know when it can strike you. Hence, it is important to be prepared and secure your loved ones’ future so that regardless of whether you are around or not, they are able to achieve their dreams.
A 20-year term life insurance policy is one of those many plans that you can purchase keeping in mind your long-term goals. This type of plan provides you a cover for over two decades and helps you secure your loved one’s future for the said period of time.
A 20-year term life insurance policy provides you with various features and benefits. Some of them are given below:
These benefits and features might vary depending on the insurance company and the plan provided. It is always advisable to check the policy first before purchasing.
This plan is perfect for you if you have long-term dreams to fulfill. You can purchase this type of plan if you want to cover your family members especially your children, until the time they are completely independent. This kind of policy also helps you in clearing your long-term financial liabilities and ensures that your family members do not have to bear the brunt of any monetary difficulties in case you are not around in the future. This type of plan is also recommended if you cannot afford to buy permanent life insurance policy due to its high premiums.
This type of plan works in a very simple manner. As you purchase a 20-year term insurance plan, you will have to pay premiums as per your convenience. You can pay your premium on a yearly, half-yearly, quarterly, or monthly mode. In case of an unfortunate event of your death, the nominee will receive a lump sum amount called the death benefit provided the policy is still in force. No benefits will be provided whatsoever if you die post the policy attaining maturity. Since it is a term insurance plan, you won’t be eligible for any maturity or survival benefit in case you survive the term.
Some of the 20-year term insurance policies that you can avail are:
No, the insured cannot extend the period of his/her term insurance policy. The policy will be active for a definite period of time, in this case for 20 years, post which its completion, it will lapse. The individual will then have to purchase a new policy for himself/herself.
The insured can cancel the policy within a given period of time which is generally 30 days. Post the activation of the policy, if he/she wants to cancel the policy, then he can surrender the plan. A policy can also be cancelled if it lapses due to non-payment of premiums.
Yes, the premium payable will depend on the cover chosen by the insured and will also depend on his/her age and health conditions as well.
The premium rates might get altered and this completely depends on the insurance company if it chooses to do so. Some of the policy offers fixed premiums. Hence, it is important to check with your insurance provider regarding the premium rates before signing on the dotted line.
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