Term Life Insurance is a simple and most cost-effective form of Insurance. Term Life Insurance products are typically designed to cover you for a specified period. Term Policies come with various features and you may be able to add additional features to enhance your coverage at the time of purchase.
Why purchase Term Life Insurance
Term Life Insurance is typically designed for short-term needs and is a cost-effective vehicle to financially secure your family's future until your debts are paid off and until your dependents become financially independent. Most individuals that purchase a Term Life policy do so to protect their family from financial risks. As an example, an individual may align their policy term with the duration of their mortgage, business loans, and any other debts.
How to decide on a coverage amount
An appropriate amount of life insurance coverage should at least cover your outstanding debts, taxes, probates, final expenses, and your family's lifestyle expenses; ensuring that your dependents don't become financially obstructed in the event of your untimely passing.
As a general guideline, you may consider your coverage to be roughly 10 to 12 times your annual income. You can use the Insurance Calculator to determine how much life insurance may be required in your case.
What is the length of a Term Policy
Term Life Insurance policies can range from 10, 20, 25, 30, or to age-65 in duration. Your premiums for the duration of your policy term stay the same. Most policies offer coverable and renewable options before the age of 70 as long as the policy is in force without giving additional medical evidence.
Anything to consider if you Smoke
Yes, the premiums for individuals who smoke are typically higher than the standard non-smoker insurance rates.
When is a Life Insurance Company not obliged to pay a death benefit
In a Standard Life Insurance Policy some of the exclusions may include:
Suicide within the first 2 years of Policy
Act of War
Act of Crime
Act of Crime where your Beneficiary is a suspect
Untruthful information on your application
Misrepresentation or fraud
references and credits: CISRO/OCRA