Term Life Insurance: Peace of Mind for You and Your Loved Ones
Shopping for term life insurance quotes is one of the smartest decisions you can make. Insurance is important, especially if there ever comes a time when you’re not there for your family and other loved ones. It’s a morbid thing to think about, but it’s a reality. You know money isn't everything, but you want to make sure that your financial obligations are taken care of after you’ve died. A life policy can do just that, extending your contribution to your family's ongoing ability to maintain its standards. That's because insurance can step up and provide a hand.
Let’s start with the basics: What is this type of insurance? Like most categories of insurance, it’s a contract between an insurer and the insured, or in other words, a provider and someone who has bought a policy. This particular type of contract states that upon the death of the insured, the insurance provider will pay an amount of money to a designated person. The beneficiary will receive benefits after the death of the insured. Sometimes additional money is included in the benefits, such as funeral expenses. During the period in which the policy is in force, the insured pays a premium or lump sum to the insurer to fulfill his or her side of the contract.
It’s important to note that the insured is not always the owner of the policy. Frequently these people are one and the same, but other times they are not. If a man purchases an insurance policy on his own life, then he is both the insured and the policy owner. However, if his partner purchases a policy on him, then the man is the insured, but his partner is the owner. The payer and the owner of a policy can also be different people. The owner determines the beneficiary, and the beneficiary needn’t be a party to the policy.
Like most insurance policies, a term life insurance policy usually contains exclusions. Such events that could invalidate a term life policy are war and riot. Barring these exceptions, this kind of insurance brings peace of mind to the insured. A policy means that beneficiaries or lenders will have the money they need after the death of the insured. A common example of the insured is a parent. Mothers and fathers want to know that their children will be financially stable in the event of their death.
Another way term life policies are like other insurance policies is that you can add coverage with riders. Common riders include provisions for critical illnesses, disability income and a terminal illness diagnosis. Riders differ by state and provider, so talk this over carefully with a licensed agent to make sure you know what you're getting.
What you need to know before looking for life insurance quotes online
It’s important to have all the information you need before you start shopping for life insurance quotes online. The insurance industry is large and policies can be very complex. Know that there are two types of life policies:
- Investment policies. These insurance plans are intended to spur the growth of capital through several payments or a single premium. Whole life, universal life and variable life policies are examples of investment policies.
- Protection policies. A term life insurance policy is a common example of a protection policy. This kind of insurance will provide benefits after a specified event.
First, get all the information you need here on termlifeonly.com. Learn what is term life? Then it’s crucial that you shop for the best term life insurance quotes. By collecting multiple estimates from various providers, you can find the most affordable policies. After you’ve gathered several term life insurance quotes, compare policies side by side. Look up the reputations of your top carriers. Do they have good reputations? Do these companies follow through on their promises? Get started today and do your homework. Afterward, you can shop for term life insurance quotes with confidence.