subject: Term Life Insurance For An Easy Financial Coverage [print this page] No matter how much a person earns per month, a financial security is invariably sought by all. This comes in forms of dissimilar saving procedures, offered by banks and financial organisations. While some prefer to invest in a fixed deposit to secure their future, others choose insurance policies. Term life insurance somehow makes a better choice for people who do not have extravagant savings to secure. This kind of insurance has gained immense popularity because of its inexpensiveness. However, another policy that often comes to our attention is life assurance.
Even though life assurance and insurance sound identical to our ears, they are not to their offering companies. Their clauses, coverage and promises are remarkably different. It is like politicians making a snide comment on something that is less understood to the commoners. If you are interested in learning their core differences instead of distinguishing them by their prefixes, then here is what you need to read. A life assurance is more like a decision than a policy that is taken to secure the future comfort of the nominated individual, while insurance is purely a policy that pays the beneficiaries with a sum of money upon the death of the holder. Term life insurance on the other hand, is a policy that returns back the full amount of premium that you paid over the length of the term.
This policy provides coverage in exchange of a fixed premium paid for a particular period of time. With the expiry of the period, the previous coverage is also no longer provided. Hence, it is a straight-cut deal where you are assured as long as you are in payment terms. The term life insurance marks the origin of general insurance that is more often sought than any other policy. However, term insurance provides the option of renewing the coverage or forgoing it after the contract period gets over. Thus, the flexibility is there that is usually missing in life assurance policies where a commitment of a life-time is required.
Adjusting the focus on life assurance, it has certain other resiliencies that are not as prosaic as the life insurance ones. When you are buying such a policy, you are given to choose a cover level. This particularly means the amount of money or the kind of coverage that will be given to the beneficiaries after the holder passes away. Like term life insurance, you can determine the time period during which you need the protection.
Even though the span is usually long-term, there is still the option of breaking free of the contract instead of getting hooked to it for a life-time. For instance, if you are uncertain about your earning stability for a period of time during which you will need some coverage, you can opt for the term until you are home free. Even if the premium payer passes away due to some unfortunate unseen situation, the nominees will be handed out the promised money, provided all criteria are fully met.
by: Orson Scott
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