TERM LIFE INSURANCE

Life insurance is essential to all good planning – whether it to be protect your family against a sudden loss or plan your estate.

Term Insurance means temporary insurance protection. Usually term insurance is very cheap.  Term Insurance can meet our temporary needs (Example – Mortgage Protection) at the lowest possible initial price.

What you need to know when buying term life insurance:

The Renewal Period:
If it’s possible that you will need your coverage after the first renewal period (after 10 years,20 years or 30 years term). Term policy can belowest initial cost, but cost may increase each 5, 10 or 20 years. Cost can rise dramatically in later years.

Compare both the initial premium and the renewal premium rates. What would happen if your health deteriorated since you purchased your insurance and you still need life Insurance? Does your policy rates are guaranteed or not.

Conversion Option:
Do you have the flexibility to convert your term insurance policy to permanent policy at some point in the future? If yes, are there any restrictions? Because some companies only allow conversions to specific plans and this can work against you. Most term polices has a maximum age for conversions. Every company has their own limits and restrictions. If you don’t convert prior to the age specified, you may be left with no coverage when your term insurance expires.