A term life Insurance is a life insurance product that simply pays out a lump sum to your beneficiary upon your death. It has a term limit which if passed will result in the termination of the policy coverage.
Term insurance comes with a few features such as a guaranteed renewability, insurability and convertibility options.
The guaranteed renewability option in a term insurance plan allows the life assured to renew the policy upon its due date without the need to go through a medical underwriting.
The convertibility option lets the policy owner/life assured convert their term insurance into an endowment or whole life insurance policy.
Some companies also have a guaranteed insurability option which allows the insured to increase their coverage upon certain life events such as:
Some riders include but are not limited to:
A Term insurance can provide you coverage from as short as one year or up till the age of 99.
The common choice for an insured will be to provide coverage until age 65 or 70 when they are retired or when they have fully abstained themselves from any liabilities or financial commitment to their dependents.
Yes. Aviva has the My Protector Legacy and AXA’s Term Protector have a limited payment term option.
For most companies, the premium for the death benefit and total and permanent disability benefits are guaranteed.
Premiums for riders such as early stage critical illness and advance stage critical illness are not guaranteed and may be subjected to change in relation to the insurer’s future claim experience.
A significant aspect of term life insurance is the absence of cash value. In contrast to a whole life insurance, most term life insurance does not provide any return should the policyholder surrender or terminates the plan. As a result, the premiums are usually much affordable as compared to taking up a whole life insurance.
There are many reasons why you should get life insurance coverage, the main reason is to provide financial stability to your dependents should you die or become unable to work due to your disability or illnesses. Other reasons can be to ensure your liabilities, such as your mortgage loan, is fully paid upon your death so your dependents will not have to inherit the burden.
Business owners or corporations can get protection on their key staffs to provide compensation for their family members or to themselves within their employment period.
Given the cost and time specific requirement, getting a term life insurance may be the most efficient and economical way for an individual or company to manage a part of their financial risks.
