Who Needs Term Insurance
If you buy a car or any vehicle, immediately we all go for insurance. No one thinks that he/she is a safe driver and there is no need for insurance. In case you meet with an accident, you get the maximum amount for which you have insured and it will be of great help to repair the car and get it back on road. Suppose you don’t meet with any accident, then the premium you have paid will be a waste. However, one always likes to have security and protection so that one can live without mental stress. Similarly, the same rule can be applied with our precious life with reference to life insurance also. If one cares for the material thing so much, how much one should think of ones life and care for it. The basic principle for both is one and the same.
Should You Go For Term Insurance
If you have a family, with dependants (spouse, children and dependant parents) then it is a must to go for Term Insurance. This is the best insurance considered for this group of people, as it covers a major amount in case of death or critical illness. Term insurance is the simplest form of insurance. There are no complications and anyone can understand the rules of this term insurance policy easily before opening one for the same.
The common question which comes in ones mind when they go for term insurance is that suppose I out live that guaranteed period, then all the premium I have paid is a waste. Yes it will be an absolute waste, but still one should go for this term insurance as it is the cheapest one, and one cannot assure that they will live for the guaranteed period.
Some Term Insurance Options
1. Some of the leading insurance companies offer Single Premium Term Insurance Policies. The name itself suggests that there will be only one single premium paid for the whole term which may be 15 years or any period you may select and till the term ends one can forget that you have a policy also. This is best suited for those whose life style is posh and engaged in very good jobs, and those who are earning a lot. In case of your death, it is up to the beneficiaries to proceed to claim the death benefits. However, you must ensure when you buy your term insurance you must ensure that your beneficiary or beneficiaries should be in picture and where you have stored this policy (safety locker) etc. Most of the youngsters who are working and who have dependents should go for term insurance.
2. The second kind of term insurance is the Regular Premium Term Insurance Plans. In this like the recurring deposit in our Savings Bank, one can pay a fixed regular amount as premium. It can be quarterly or monthly or half yearly or yearly installments of premium. One can pay directly to the insurance company, or can give post dated cheques for the amount of premium or can give standing instructions to the bank to deposit your premium amount to the insurance company directly from your savings account. This kind of term insurance is good for the working group with not a great salary but at the same time their life is protected. Even school going children can be benefited through this term insurance.
3. The third category in term insurance is the term policies with a return of premium. The premium they pay will be more than the regular premium term insurance. At the end of the guaranteed period, only the net amount of premium paid will be returned back to you without any interest on the premium amount. This has at least the advantage that you get back your premium amount in case you survive the guaranteed period and you don’t feel that the premium paid has gone waste. Some insurance companies have this kind of insurance and they prefer to give it for non smokers only, as their chance of living longer is brighter than the smokers.
4. The fourth category in the term insurance is the Loan Cover Term Insurance. If you take a loan the same amount will be insured and the insurance company calculates the premium based on the loan amount, the period loan, the interest rate, the interest payment as well as principal repayment. After considering all these factors, the insurance company works out an amount which one has to pay regularly. In case the person dies, at least the dependants may not worry as to how to repay the loan/debts. This kind of term insurance is good for smokers, spouses, and single individuals.
Policies For Smokers
There are certain leading insurance companies which give affordable coverage for smokers. The policies are specially designed for smokers and tobacco users. In some companies they consider those who smoke cigars or pipes as non smokers. Some companies impose a limit on how many cigars a person smokes per month. Smokers insurance is designed on the type of tobacco items they use. If you are a social smoker, then it is possible to get the non smoker rate. Some of the companies keep it secret that the policy holder smokes and help them not to spoil their name to their third parties such as employers, etc but at the same time they pay affordable smokers rate privately. Smokers insurance protects your loved dependants against the financial hardships due to premature death.
The premium calculated for these different categories of term insurance varies from company to company. When you go for the selection of the insurance plan, don’t think only on premium, see the other benefits which the company gives, as well as the reputation of the company.
How To Avail Lesser Premium Rates?
The adults who are engaged in occupation like driving, with good driving reports pay lesser premium for their auto insurance. So it is a must to have documents like driving license, information of the vehicle you drive, how you drive etc. The life style also influences in the determination of the insurance. In case you have expensive luxury cars, and you commute a long distance daily the premium will be higher in such a case.
There are many websites which provide first hand information about the insurance and also advice you to go for the best option, money wise and safety wise and so on and so forth. However, one can go through many agents, who also have fairly good knowledge of different insurance term policies as well as while claiming during death benefits.
Some Other Reasons to Have A Term Insurance
If you live in a place which is prone to have earthquakes or volcanic movements or other earth movement, by paying an additional charge the coverage can be endorsed in your term insurance.
If you are young and you cover a term for a shorter period then the premium will work out cheaper. If you are older in your forties or fifties, then the chance of death and sickness is more compared to a youth, so the term insurance premium becomes higher. Always go for buying quality insurance and low cost term insurance and make the best choice.