Term Life Insurance/Term Life Assurance
What is Term Life Insurance?
Term Life Insurance is also known as Term Assurance, or Term Life Assurance. This type of Assurance provides Term Life Insurance for a limited period of time. After that period, the policy holder can either drop or annually pay the increasing policy premiums to continue the coverage. This life assurance is also known to be the cheapest and best way of purchasing substantial death benefit. If the policy holder dies during the term, the death benefit will be paid to the policy holder’s beneficiary. The Term Life Assurance is considered to be a normal type of Life Insurance purely offers insurance protection because it builds no cash value to it.
The main Types of Term Life Assurance:
1. Level Term Life Insurance.
This Type of Insurance is also known as Level Term Assurance, and provides the policy holder with a fixed amount of coverage with fixed premiums over a certain period of time. Usually this type of Term Assurance is purchased in 10-year increments. The Level Term Assurance is usually sold with guarantee that the premiums stay constant, and never increase throughout the duration of the policy.
2. Increasing and Decreasing Term Life Insurance/Term Life Assurance
With this type of insurance, the amount of coverage may increase ir decrease throughout the term, with the premiums remaining level.
3. Renewable Term Assurance
The Renewable Term Assurance is a ordinary level term insurance that provides the policy holder with the option to renew the Term Insurance coverage at the end of the term without evidence of insurability. The Renewable Term Assurance is ideal for those who wish to provide large sums for their family at economical premiums.Endowment Assurance. The convertible term assurance is a good option to those looking to save on premium costs.
5. Group Term Life Insurance
The Group Term Life Insurance, or Grouper Term Assurance as it is better known, is a type of insurance that is typically purchased by employers, professional associations or companies, and is intended to cover several/groups of individuals at once. The group term assurance benefits all the beneficiaries. This option usually results in the premiums being lowered.
Other Types of Term Assurance:
1. Pension Term Assurance
The Pension Term Assurance policy is a type of life cover that is designed to pay your dependents a guaranteed lump sum if you die during the term and duration of this plan. The pension term assurance usually costs less on the long run as you can claim tax on all your contributions, and covers you until the day you decide to retire.
2. Re-Entry Term Assurance
The Re-Entry Term Insurance is known to be the best and cheapest of all Term Life Insurance Policies. With this term assurance, the policy holder may re-apply for term insurance yearly or over a period of five years. By choosing the five year option, the policy holder will pay less on the premiums.
3. Deposit Term Assurance
The Deposit Term Life Insurance is a 10-year renewable Life Policy. This policy is in which a deposit is paid in the first policy year, in addition to the required, regular term assurance premiums. The deposit is left for a certain period of time, and accumulates interest. After the period of the term, the policy holder may renew the deposit term assurance policy without having to submit any evidence of insurability.
It’s important to analyze and examine all the Assurance and Insurance companies, and compare the Term Life assurance rates and costs before purchasing a Term Assurance Policy. Compare the different Assurance Policy and insurance rates in order to get the best Term Assurance cover.
4. Convertible Term Assurance
The Convertible Term Assurance gives the policy holder the right to convert the standing Term Assurance policy to a permanent assurance policy. This insurance is also known to be cash value insurance, and is specifically designed for those who are unable to pay larger premiums on whole life insurance.