Benefits Of Term Insurance
Term life insurance is the minimum expensive of all the type of life insurance. Term insurance offer protection for 5, 10 or 20 years or age 65 or 75. The benefit of term insurance is that the coverage may be renewed for additional term and many insurance companies permit to convert to permanent or whole life insurance plan. Some insurance companies offer benefit like no medical examination is necessary up to $250,000 insurance plans. If you are a resident of Canada, term insurance plans provide you 100% tax free in Canada, 10 days money back guarantee and 30 days grace time to pay premiums.
1. Renewal Once Every Ten Years
Another benefit of term insurance is that you can renew the policy every ten years up to the age of seventy five and your premium will be the same through every ten years and all these is done without extra cost up to your age 65. You have an option to convert the policy to whole life insurance plan without further medical examinations. There are five years term policies which may be renewed every five years and can be converted to permanent life insurance plan any time. The benefits is premium rate will never be increased for each five years period. This facility is available up to your age of 80 years. In addition before you become seventy years you can convert this policy to permanent insurance plan.
2. Accidental Death Benefit
Another important benefit offered in term insurance is accidental death benefit. If your death is accidental and you have not defaulted in your premium payments the beneficiary will get double the coverage amount. For example, if your coverage amount was $100,000 in the beginning your beneficiary will receive $200,000. Added to this option to your policy, no additional premium is required which is another benefit. Disability waiver is a benefit for those who become disabled. This person need not pay the premium until he or she is completely cured. This benefit is available up to age 65.
3. Buy Two And Pay For One
Child term rider benefit of term insurance which may be purchased along with preferred five year plan to cover your children. Children up to 16 years can avail this option and when the child becomes 25 years or you become 65 years, the child can convert this coverage to permanent insurance plan up to five times of child term rider amount. Normally, annual policy fee is $75 for the first policy and $50 for every additional policy. The advantage is if you buy two or more policies at a time you can pay fees for one policy only.
4. Free Terminal Illness Benefit
Free terminal illness benefit is paid if you are diagnosed with terminal illness and you can receive 25% of your coverage amount if you are alive. Terminal illness is described as an illness that says your life will end in less than two years. The amount paid to you in advance is deducted from death benefits coverage. Free transportation benefit is one of the benefits of term insurance which is offered to transport your body in case you die more than 200 Km away from your home.
5. Adjustment Of Premium Amount Against Cash Value
Cash value is a benefit offered in the event you want to terminate your coverage starting from fifth year of policy. Automatic premium loan prevision is, after you paid a number of premiums and you defaulted one in the middle, insurance company automatically borrows this amount against your policy coverage to pay the missed payment. So that you can pay the premium later and your coverage will continue without any break.
6. Cash Benefit If Hospitalized
Hospital cash benefit is also a benefit of term insurance which is paid when you are hospitalized, this amount is paid on a per day basis and it is doubled if you are admitted to ICU for up to 30 days. Term to 100 benefit offer presents a guaranteed life time protection with this offer you can pay premium up to your age of hundred. This plan is also available on joint first to die or joint last to die plans. Along with this policy return of premium option also is available that will pay back half of base premium payments.
7. Options To Share A Policy
The term to 100 plans is also benefit of term insurance which is available on a single life, joint first die or joint last to die basis. Joint first to die is a method by which two people can share one policy and when one of them dies, the living person will receive the amount. Joint last to die method also, this policy is shared by two people but when both people die the benefit will go to the beneficiary. Return of premium is a benefit of term insurance which is if your policy becomes paid up at the end of 10th year you will get an option to cancel your policy and receive half of your basic premium payments.
8. Benefits For Non Smokers
Smoker premium benefit is offered to non-smoker for the first two years. At the end of second policy year if you have stopped smoking for 12 months more you can continue to get the non smoker rate. You have to support with urinalysis. If you suffer with some serious sickness medical specialist in your area, country or throughout the world will be offered to you by this best doctor benefits. These doctors work with the local doctors and diagnose your medical conditions. But this may not be free always. But you will be required to finance for the best treatment.
9. Loan Against Policy
Policy loan is a benefit of term insurance which allows you to have a loan from the insurance company provided you have paid your entire premium. The loan amount will be set by the insurance company and it is available to you after your age of 65. Extended insurance benefit is offered if you are not able to pay premium and if you have paid premium for at least for two years. You can pay your dues of premium and revive your policy. If this facility is not available in your policy it will get lapsed. Reduced paid up option is one of the benefits of term insurance by which you can reduce your coverage amount after the policy has completed 20 years. This means you need not pay any more premiums. You can cancel your policy and receive a lump some amount payment based on the premium, if your policy is in force for 20 years.
10. Reasonable Prices For Groups
Voluntary life insurance programs permit workers and employees to purchase a supplement group term insurance at a reasonable price. If you are an employee less than 50 years of age, just by paying a dollar a week you can get an insurance of $10,000 to $35,000. This does not require any health questions or medical examinations. GUL is a group program that gives benefit of term insurance that is if you are an employee you can buy a basic plan which is low in cost. Initially protection only is offered but at a later stage employee may start the accumulation portion. Voluntary benefits are various benefits of insurance and investment products available for employees as a voluntary option. The benefits offered are for cancer, accident, and supplemental medical and short term disabilities. This also controls cost and shifts the risk responsibility to employer. Shift in retirement benefit, consumer driven health plan benefits are also available in term insurance.