Term life insurance is a policy that covers you for a fixed period of time. if you die during the term, your beneficiary gets the death benefit.
The money the insurance company pays to your beneficiary.
You’ll lose it once you stop working there.
If you have young children, you may want to choose20 or 30 years of term life coverage to help your children for college or other future financial needs. On the other hand, if your children are out of college and supporting themselves, a shorter coverage period might be better.
It is a good idea to work with an agent to review your policy to ensure your coverage is still appropriate. Inflation affects the amount of coverage you need over time.
The face amount of the policy is the amount of the death benefit stated in the policy.
Premiums are the payments made to the insurance company to purchase and to keep the policy active.
Insurability refers to how likely an applicant is to be offered coverage based on current health, medical background, family history and other factors.
Online insurance plans generally quote a lower premium than the “brick and mortar” i.e (physical locations) because the company saves the distribution expenses, infrastructure charges and other overhead thereby lowering the premium rates.