A 20-year term life insurance cover is one of the affordable insurance that you can get. It is referred to as term insurance because, in this case, one is given cover for a definite amount of time, at the end of which the holder of the policy must renew it, often to a higher premium rate. This kind of insurance is cheap. It however, does not build any extra cash value and so, does not qualify for dividends. This kind of insurance policy is helpful because after the agreement is signed, the payments remain equal throughout the stated period. After the expiry of the contract, the premiums start going up slowly every year.
For you to renew the insurance policy or to convert it into a higher premium policy there is no need of proof of good health, as you are already a client holding one of the available policies. One can convert their level term policy into a higher premium policy or convert it fully into a new policy like permanent life insurance. This conversion at the end of the contract is better for the client, because all the money they had put aside, plus the new higher premium rates will start collecting dividend thereby increasing cash value.
Mostly, the people who need an insurance policy quickly, but do not have access to funds to get a better insurance policy, use level term insurance. However, it is a reasonable policy choice to make if you need one quickly because of various reasons:
It is affordable - When the insurance is crucial but there is not enough money to buy the more lucrative ones.
Has a clearly defined time - One can be sure of the insurance and be certain about the details of the policy. This is because there will be no changes to the insurance contract until it expires, after which one is free to continue with it or switch to the more lucrative insurance policies.
Protection of businesses - This policy is beneficial as it helps cover some of the business costs incurred, thus ensuring the business' continuity.
Protection of family - Here, the policy can be used to pay school fees or help in paying the mortgage on a house. This is advantageous, as it does not put pressure on your finances at any time.
This kind of insurance begins with a 10-year term life insurance cover. One can choose any several years between the 10-20 years. It offers pure insurance protection and is best used to protect the business or family when there is not enough money to do so. At the end of policy's life, most people upgrade to a permanent life insurance policy, which offers better options and returns.
For you to renew the insurance policy or to convert it into a higher premium policy there is no need of proof of good health, as you are already a client holding one of the available policies. One can convert their level term policy into a higher premium policy or convert it fully into a new policy like permanent life insurance. This conversion at the end of the contract is better for the client, because all the money they had put aside, plus the new higher premium rates will start collecting dividend thereby increasing cash value.
Mostly, the people who need an insurance policy quickly, but do not have access to funds to get a better insurance policy, use level term insurance. However, it is a reasonable policy choice to make if you need one quickly because of various reasons:
It is affordable - When the insurance is crucial but there is not enough money to buy the more lucrative ones.
Has a clearly defined time - One can be sure of the insurance and be certain about the details of the policy. This is because there will be no changes to the insurance contract until it expires, after which one is free to continue with it or switch to the more lucrative insurance policies.
Protection of businesses - This policy is beneficial as it helps cover some of the business costs incurred, thus ensuring the business' continuity.
Protection of family - Here, the policy can be used to pay school fees or help in paying the mortgage on a house. This is advantageous, as it does not put pressure on your finances at any time.
This kind of insurance begins with a 10-year term life insurance cover. One can choose any several years between the 10-20 years. It offers pure insurance protection and is best used to protect the business or family when there is not enough money to do so. At the end of policy's life, most people upgrade to a permanent life insurance policy, which offers better options and returns.
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