Term Insurance is a type of life insurance only, a byproduct that implies financial coverage provided to the policy holder for a particular time period; if the insured dies during the term then death benefits are paid to the beneficiary but it ceases if one outlives the set term of the policy. It is the most basic and inexpensive one and is generally for a specified period of time like 5, 10, 15 or 30 years.

Term insurance is a highly affordable type of information and promises to provide for an extensive financial cover at a relatively much lower premium and thus, makes for a preferred choice among many. One easily find a number of alternative with the some of the good yet cheapest term plans from many brands. Moreover, one can choose the specified term at ease, which can be as long as up to 30 years or even more, depending on the insurance company and also, it comes in handy for covering specific needs that are relatively short term and will disappear in sometime such as mortgage payments or finances pertaining to child care or any other contingency.

The major flaw with term life insurance is due to the alterations that may occur with time such as the premiums increase as you grow older, that is, once the guarantee period expires. Also, the policy does not offer any cash value or even the paid-up insurance facility and the given coverage can possibly terminate at the end of the policy term or may get rather costly to continue with.

Generally, term life insurance is a better idea for the younger individuals and families, needing protection cover against the income loss of the primary bread winner for a defined period of time, at a reasonable cost. Also, it is mostly better if your insurance need is for a period of less than 20 years but if it is for than 20 years, then the whole life policy can be a better fit. There are options for acquiring the best term insurance policy that allows one to convert the term coverage to endowment or a whole life policy, without even a medical analysis, which is advisable to check for beforehand.

One’s coverage requirement usually depends on the individual’s circumstances. Important aspects to keep in mind when considering insurance include estimated total of final expenses (e.g. medical bills, burial costs etc.), total living expenses for all surviving family members, any outstanding loans (e.g. auto, credit cards), the unpaid balance on one’s mortgage, expected costs for your children’s education, the estate taxes, and any business maintenance costs.

Yes, one may take more than a single term insurance plan; however, it needs to be declared to the insurance companies beforehand.

Premium of any term insurance policy remains fixed and unaltered all through the policy term, given that all the other aspects too remain unchanged.

A proper medical evaluation of an individual is compulsory for availing every term insurance plan, whatsoever.

Mostly, all types of term life insurance can be altered and converted to permanent life insurance, if needed. Such policies are usually convertible to permanent policies only within a definite period of time, set from the issue of the policy, without the need for giving any new insurability evidence (if the benefits remain same, are not increased).

It may or may not be the same as the final rates are assessed by the company through a formal process known as “underwriting”. It generally is inclusive of the current health condition review, detailed medical history as well as one’s family history among others. Underwriting is employed to determine one’s final rating class that further establishes the final premium rates and thus, they may differ from the rates quoted on the website.

It is a type of a non-compulsory policy provision that pays some extra amount over and above the set coverage amount of one’s policy, if the event of an insured's death occurs due to any accident. Without this benefit rider too, one’s term life insurance policy is liable to pay the specified death benefit in the policy, if the insured faces death in any accident.

The waiver of a premium rider is an optional policy provision that provides for the life insurance policy’s premium payment in case of the total disability of the insured to pay; age restrictions and coverage maximums apply as per usual.

All of our partner insurance companies require a basic paramed exam in conjunction with a life insurance application. Insurer third party medical examination team contacts a person after receiving one’s complete application. They work with an individual to arrange for the exam at a mutually convenient time and location and there are no surplus costs for this.

A basic paramed exam includes the following:

An applicant's financial information is among several factors used to determine the amount of insurance the company is able to issue to an applicant. This information is required by ALL insurance companies as they must justify the coverage amounts of all policies they issue. It is also done to control any frauds and limit situations like excessive insurance.

Income multiples are one method of calculating coverage amounts, which is why annual income is required. Net worth helps insurance companies to develop a holistic picture of the family's overall financial position and the possible loss in the event of the insured's death. A common misconception among insurance consumers is that they can purchase any amount of life insurance they desire, regardless of their financial considerations, which is simply not the case.