With uncertainty being a part of everyone’s lives, the importance of purchasing a life insurance policy to secure the lives of your dependents cannot be understated. The primary purpose of all life insurance policies is to provide financial security to your dependents in case something untimely happens to you. Life insurance plans come in a range of different types, and policy buyers can pick a product type as per their needs. However, if you are looking to purchase a policy with a large life cover without having to pay a high premium rate, a term insurance policy is your best bet.
Term insurance is the most basic form of life insurance coverage. When you purchase a term insurance plan, you receive coverage for a specific policy tenure, usually ranging between 5 and 40 years. During this policy term, if the policyholder happens to meet with an untimely eventuality, a death benefit will be paid out to the beneficiary.
Since term insurance policies do not acquire a cash value during the policy term, they are typically offered at a lower premium rate than other life insurance products. However, this also means that you, as a policyholder, will not receive any maturity or survival benefits. That being said, most insurance providers do offer riders along with term insurance policies. Thus, if you wish, you can purchase a rider and increase your coverage. In order to purchase a term insurance policy, the policy buyer will usually have to be over the age of 18 years.
Purchasing a term insurance policy is not something that you should put off if you wish to ensure that your loved ones are financially secure regardless of what may happen in the future. However, before you purchase a policy, it is vital to compare the benefits and prices of various policies to ensure that you are paying a fair price for the coverage that you receive.
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