Term Life Insurance

What is Term Life Insurance?

Set policy limiting the duration of the warranty period. When the policy is outdated, it is the policy owner decides to extend the term life insurance or to provide cover. This type of insurance differs from whole life insurance, the owner of the policy to be extended to meet the 100 years of age (eg, death).

History Of Term Life Insurance

Imperial Age England, Edward Lloyd's Coffee House is a place for investors to underwrite insurance policies for the maritime industry in London. At the end of 1600 one, the policies on the survival of people have begun to appear. The Society of Lloyd's insurers eventually give birth to the famous insurance company Lloyds of London.

Life insurance during the existence of its first hundred years, was confused and not with the game unlike today, when a financial insurable interest is necessary for a person to purchase a life insurance policy from others, insurance life in the old days was often used only as a vehicle of Paris on the survival of a disinterested third party. The expansion of the defect was great until the British banned it in 1774.

The first cases of life insurance policies annually renewable term life insurance: the coverage period lasted only a year, but the policy may be extended by one year of coverage.

How Does Term Life Insurance work

Term life insurance includes the features common to all life insurance policies. To examine these proposals, how to read the books of life insurance.

A life insurance policy guaranteed fixed premium standard. This means that the size of payments to the insurance company, life does not change with time. The policyholder payments, all in an amount equal to equal time intervals (monthly, quarterly, half yearly or annually, depending on society and politics). The contractor is free to suspend payments at any time if he or she, however, the final contract (ie, the life insurance company no longer has to pay a death benefit).

A policy standard life insurance death benefit guarantees fixed. This means that the death benefit will be a certain amount, regardless of the current policy. The insurance company will pay the same amount if the insured dies during the first day of coverage, as if he / she dies during the 29 years of coverage.

Term life insurance cover to be temporary. For example, the policy of 20 years is intended to cover 20 years or more. However, there are exceptions to this temporary one.

Who Should get Term Life Insurance?

Term life insurance is not only the bread winners. E 'is generally purchased for the following reasons:

Child care payment

Higher Education Fund

Coverage of debts or liabilities (eg mortgages, funeral expenses)

Fund a purchase agreement and sale of businesses

Protect against the loss of a key employee

Replace a resource

If you have children at home, go to the debt, or business owner, life insurance can be a good (and cheap) in assets to manage.