We may be in need of some protections for a short period of time. It is not uncommon nowadays. Need of that for a certain period of time, like I have started a new business in a hope it will be successful. But it can also be taken as the financial security for your family. Most of the business has a term of danger period of 3 years to 10 years. Hence, a new business starter can thing that he or she needs a financial protection in that time period. Even some job holders can buy this type of insurance if they think that their particular job is in some kind of dangers and the policy will cover him or her family for the time being. We see that these type of policies becoming very popular among the shoulders at the time of Iraq and Afghan war time. They have every right to do so as they do a high-risk job and this policy is very suitable for them.
Term insurance policy is also known as a temporary insurance policy because this will only give your protection for a short time of period. But why people should buy a short time policy while they can cover all their life? This is not a short answer to give like in two or three words or sentences. The whole insurance process is quite complicated one. There are so many rules and regulations. Every client has different kinds of needs and demands. Every company has a different rule for a client. Yet, they may consider the client situation and make some adjustment in their policy. This huge topic is not possible to make you understand just in an hour. However, I will give an over all idea about term policies.
Positive Sides of Term Life Insurance
As I have said before insurance is a complicated matter, yet temporary insurance is the easiest of them to understand. While any other kind of policies can be difficult to understand. In financial matter, people buy this policy as they understand it well. Also the rule and regulation for term is easier than permanent policy. They will not ask for a lot of papers and medical tests. Hence, it will be easy for anyone to get. In other words you can say it is the simplest of all life insurance policies available.
The pricing of term life insurance policy is getable for all kinds of people. The price is well in around for the middle and lower middle income people. However, another thing is that term insurance market is kind of competitive so it gives you freedom to check all the companies and get the suitable coverage for yourself. It is a common law of economy that consumer get the benefit of a competitive market.
In insurance policies there might be some hidden taxes or fees. Sometimes the consumer does not understand that or ignore the fact. This can lead to some misunderstanding that can harm your policy later. In the event of term policy there are almost no chances of happen these things. Term policy is free of hidden charges, taxes and extra fees. This is also a positive thing that the premium of policy will not raise from time to time. So you can remain tension free on this matter.
The most important thing is that you can add clause and terms as per your needs in short time policy. Experts say that this is one of the two main reasons making this policy so popular among the consumers or applicants or insurance seekers. You can add burial cost or some other cost in the same policy. Yet you will end giving the lowest premium. Yes, you get it right, the main reason for this insurance policy being so popular is that you have to pay low premium or as many experts say lowest price of all premium among life insurance policies.
So, it is very easy going, low premium, and no hidden tax, less complicated policy. All the right things are for the consumer to get the benefit. You may need up buying one just after reading all these positive things about this policy.
Wait, my friend, there is always two side of a story. Now I will tell you about some major bumps that can happen to you while purchasing this particular insurance. Now let’s learn about the negative side of this policy.
Things I Must You about Term Policy
Age is a huge matter in life insurance but in case of a term policy, age rule is stricter than all other policies. In case of whole life financial protection, you can get it until the age 88 or in some cases may be after 90 years. But you will never get a temporary policy after 70. Seniors over 70 years are not eligible for this insurance policy. And with ages, the premium of this insurance rises. I mean the younger the applicant is the better it is. Senior people find it very hard to get term insurance in their favor. It will not also help you to save a large amount of money. There is not much chance of getting cash value benefit.
This is all I had to say for now. The market is changing every year. New terms and conditions are applying by both sides. It is not easy to keep up with this but you can always hope for the best to happen to you.