Would your family cope financially in the event of your death, or if you were diagnosed with a terminal illness? A term life insurance plan provides financial support to the insured's family in the event of the insured's death.
If an insured person should die during this time then the plan will provide a cash benefit. This cash benefit is usually used to help to pay for your children's needs such as education as well as bills associated with the death, outstanding mortgage, estate duties, and financial relief for any beneficiaries that would have been affected by the loss.
A term life policy will provide financial protection for a predetermined length of time, usually between 5 and 35 years. These policies are designed to protect your family until such time as they are financially independent. This targeted policy length allows for more flexibility within the plan.
A term life plan will only provide monetary reimbursement if the policyholder dies within the predetermined time frame. A term life policy will offer no other benefits apart from the stated cash benefit in the event of death; however, some term life policies are linked to a terminal illness benefit that is usually equal to the amount of the death benefit.
It is important to note that premiums associated with term life policies will not fluctuate throughout the course of the plan. Designed to provide a high-value low-cost level of protection across the policies lifetime, when you decide to buy a term life policy, everything from the type of currency that the premiums are paid in, terminal illness options, and the length of the plan are in your control.
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