Term Insurance: Why It's Important

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Term Insurance Why It's Important
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• 
  Term Insurance is a type of insurance which
  provides coverage for a limited period of time at
  a fixed rate of premium. Post expiry of the
  policy, the policy holder either has to forgo the
  coverage or obtain a different policy with
  different terms and conditions which also
  includes a change in the premium. If the policy
  holder dies during the stipulated term, the
  benefit is paid duly to the beneficiary. Term
  life insurance is the cheapest life insurance
  policy available in the market.

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• 
  Term Insurance is similar to most other types of
  insurance. If the premiums are up to date and the
  policy is current, the claims are satisfied
  against what is insured. Term life Insurance is a
  pure death benefit and hence its primary purpose
  is to cover financial responsibilities for the
  beneficiaries. The responsibilities may include
  college education, consumer debts, dependent
  care, funeral costs and mortgages. Term insurance
  is usually chosen by people who do not have
  substantial savings or by people whose only
  savings are retirement savings and they had to
  wait till their retirement. In such cases, the
  dependents have an immediate cover and are well
  cushioned financially in case of the death of the
  policy holder during the term or before
  retirement. Term cover may act as a buffer to the
  beneficiary till the retirement savings become
  available.

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• Term Insurance is similar to most other types of
  insurance. If the premiums are up to date and the
  policy is current, the claims are satisfied
  against what is insured. Term life Insurance is a
  pure death benefit and hence its primary purpose
  is to cover financial responsibilities for the
  beneficiaries. The responsibilities may include
  college education, consumer debts, dependent
  care, funeral costs and mortgages. Term insurance
  is usually chosen by people who do not have
  substantial savings or by people whose only
  savings are retirement savings and they had to
  wait till their retirement. In such cases, the
  dependents have an immediate cover and are well
  cushioned financially in case of the death of the
  policy holder during the term or before
  retirement. Term cover may act as a buffer to the
  beneficiary till the retirement savings become
  available.

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• Term insurance comes in two forms - annual
  renewable term and level term insurance. Annual
  renewable term comes with a term period of one
  year and can be renewed within the year by
  producing appropriate proof of insurability. The
  more common and reliable one is the level term
  insurance in which the premium remains the same
  for a number of years which may be 10, 15, 20 or
  30 years. The best term plans would come with a
  low and consistent premium rates and will also
  have a option to renew the plan in case there is
  a need for extendibility.
• Term plans can be bought online) or through a
  reliable agent. While an agent guides you through
  the various insurance companies and the best
  plans on sale, buying Online Term Insurance may
  require a bit of an effort and research.
  Comparing different premiums, companies and their
  reputation in the market, their consistency and
  efficiency during the pay out time are some of
  the aspects to be taken into consideration while
  choosing a plan. Opting for a term plan that best
  suits the client's needs and is also in sync with
  the company's terms and conditions may be called
  as the best term life insurance policy.

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