What Is So Special About A Term Life Insurance?

Insurance as an industry has been there since ages. Although we have heard about the burial clubs of Rome and the workers’ guilds in the middle ages, the concept did not catch up because people do not want to believe that, something bad may happen to them. Truly, people were not attracted towards life insurance as they found that unless they expired within the term, their immediate family did not get anything. It was only recently that the carriers started introducing the money back policies and the insurance industry began growing at a nice pace.

Money back policies are nothing but a mixture of investment and insurance opportunities. From a non-professional person’s view, it may really look tempting as you are acquiring double benefits while buying a single policy. However if you really think deep you must know that nothing is free in today’s world. These carriers are after all here to do business. Experts will tell you that you will do much better if you buy plain term life insurance for insurance purpose and invest the difference in lucrative offers such as equity markets and real estate.

However, the question is; what is a term life? What makes it so special? Let us have a look at that first:
• A term life is a pure life insurance policy that offers you nothing but plain death benefit.
• The policy is sold for a stipulated period such as 1/5/10/15/20/25/30 years. You will get nothing if you outlive the term even by a day.
• If availed at a younger age term life insurance rates are very cheap because under such a condition you have better chance of outliving the term.
• The rates are cheap because the entire premium is utilized to buy death benefit.

Now to avail a cheap term life policy you will have to do a bit of planning. The length of the coverage should be just right and so before deciding the term, you must calculate and find out that by which age you will have no more liabilities. That means your youngest child must be self-sufficient and all your mortgages must be cleared before the term is allowed to expire.  More importantly, as I have already said, you must buy the policy at an early age while the going is fine. The insurance company must believe that you will outlive your term.

Other than that, your present health is a great factor when you go to enquire about term life insurance quotes.  Tobacco consumption is something, which is not liked by the carriers. Therefore, please do quit smoking at least a year in advance. Maintaining a proper body mass index is another important factor. Leading a proper disciplined life will also enable you to avail cheap term life insurance. They collect reports from various sources such as motor vehicles or even police departments. Therefore, rash driving and other unlawful activities are also important factors. They may increase the amount you will have to pay as premium. 

Now once these carriers accept you into the fold you will receive an agreement copy. Your agent who sold you the policy may have promised you the moon. However, it is advisable that you go through the policy. There you may find that you are not covered in all aspects. It may be something related to your job or even a plain journey. It is here that if you feel that you are taking undue risks you can buy instant term life insurance. 

Now, what is instant term life insurance? How is it different from traditional policies? Actually, if you want to know, the USP of such policy is convenience. You just have to fill up an online form and you will be taken into their fold. The major difference here is that unlike the term life you will not have to undergo the standard medical tests. Here service is instant. The only big disadvantage here is that since you are not subjected to medical tests the premium to be paid is quite high. The middle class can only buy this policy for the short term.

This policy has its advantages to. It is in fact a good place to hide any odd niggles that you may seem to carry. If you are an addicted smoker or a cocaine user, this is the place where you can buy insurance. This is an ideal place for people who have the money but not the time to undergo standard medical tests. However, here some form of checking is done when they collect reports from various quarters about your general health and behavior. Your policy may be cancelled if they are not satisfied with the feedback and so beware.