Term Life Insurance Article

Varieties and variations on term life insurance

Varieties and variations on term life insurance

What is the point of life insurance? When you die, you can?t take it with you ? right?!

Well, people often have dependents and loved ones who they want to look after if the worst happened. One of the things that death brings is a realisation of a burden that was previously borne by the deceased person ? a salary, a pension, just a shoulder to cry on? Life insurance can sort out some of these things and getting cover to see you through the difficult time is a popular idea.

Typically, life insurance pays out a lump sum in the event of the policyholder?s death and this will serve to protect loved ones and other dependents as a means of paying the bills, covering the finances. It can be taken out pretty much at any time, and stopped at any time; whilst premiums are being paid, the policy is extant, typically when the premiums cease to be paid, the policy will lapse. But there are many varieties of cover.

You can get family imcome benefit, education benefit, the policy can be index linked or not, you can change the policy into an endowment policy (which will pay a lump sum at the end of a period) and you can also increase (in an increasing term insurance policy) your value to keep pace with inflation and other factors.

Also worth noting is cover for critical illness ? those dread diseases that can affect your life in a way that is almost as bad as death itself like the loss of limbs, eyes, hearing ? a heart attack, a stroke, any other disability, Alzheimers, paralysis, MS ? the list is long and nasty but there are always insurance companies that will offer you peace of mind and cover to avoid the worst things affecting your nearest and dearest.

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