In our life, we often experience unexpected things like death, or disability due to an accident. To deal with this emergency unexpected condition, we need an Insurance as it will guarantee our needs of life in such a condition. If we don’t have an insurance, we will either risk our critical condition of life like being unable to receive an extensive treatment due to a major body damage we have. It is recommended to have an insurance in our life, as it will guarantee our life in a critical condition. The treatment level we will have depends on the level of insurance itself. The primary use of an insurance is to provide coverage of financial responsibilities for the insured or his or her beneficiaries. Such responsibilities include consumer debt, dependent care, university education for dependents, funeral costs, and mortgages.
What is Term Life Insurance
Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time. When the period of coverage is out, the client must pay for the further coverage or the coverage will be lost. The death benefit received from the insurance will be given to the beneficiary if the insured dies in the coverage period. This is the cheapest way to buy the substantial death benefit for a certain period. The aim of this kind of insurance is to provide financial help for the insured according to the terms and condition.
Advantages and disadvantages
There are advantages and disadvantages in using this kind of insurance service, we have to deal with a set of terms and condition set by the insurance company. The advantages of Term Life Insurance is that the we can have a financial coverage if something bad happens to us and it leads our death. The financial benefits can be used for the technical needs after our death, or we can give the beneficiary to the name we mentioned in the contract.
However, there are certain disadvantages of this kind of insurance. You have to die to win. You pay your premiums every year because you want to protect your family. This is inexpensive insurance so you had no problems with these payments. 20 years go by and you didn’t die. You have nothing to get back from the life insurance company. It is a fair deal as you paid only for death benefit.