Term life insurance, as its name suggests, is basically a sort of life insurance policy. At its simplest level, it promises your payment will be fixed at a set rate for a set period of time. This is known as the “term.” After this “term,” though, your payments are likely to change leaving you with no choice other than to meet them or to stop with that policy.
It is purely a life insurance policy in that it will not pay out if you are injured or something similar. It will only pay out in the event of your death. Payout will be to your named beneficiary in most cases, unless there are reasonable legal grounds for a dispute.
There are certain circumstances in which term life insurance policies will not pay out even if the holder does indeed die, as there are with most insurance policies. An example would be if the premium payments were not up to date at the time of death or if there were any breaches of the policies terms. With most life insurance policies, there is also a clause that will deny payment if the death was a result of suicide.
This type of life insurance policy is particularly useful for people who fear that their death would leave a large number of expenses behind that their family might struggle to meet. These expenses could be the cost of the funeral, covering debts or mortgages left by the policy holder or even raising children they might have left behind.
Term life insurance policies often end up being much less expensive than a permanent life insurance policy would and, as such, many people use them as a “bridge.” An example of this could be someone approaching retirement age, who is concerned that their untimely death might leave their family with a massive financial burden, but who believes that when they reach retirement, they would have enough money to cover said expenses anyway. They may use term life insurance just until they reach that point.
Find out more about term life insurance.
Helpful Articles
The Natural Thyroid Diet
The #1 Natural Thyroid Diet. Check % Affiliate Sales! Real Info By Certified Australian Naturopath. Thyroid Health Is Hot Niche Topic...
The Alkaline Diet Success Formula – Home Study Course
The Alkaline Diet Is Used By Tony Robbins And Creates A Life Of Energy, Great Health And Well Being Using Just A Few Small, Simple Actions Every Day...
The 21st Century Caveman Diet
The Paleo Diet Is The Quickest Way To Natural Health, Increased Energy, And Weight Loss. It Consists Of The Foods Our Bodies Were Designed To Eat...
Tags: Death, finance, funeral expenses, insurance, life insurance, retirement, term life insurance