Term life insurance or simply term coverage is a type of permanent life coverage, which provides coverage to an insured for the specified term. The term of the policy is the number of years that are stated on the policy. Term life policies are generally less expensive to buy because they are usually renewed for a longer period of time.
Unlike permanent life policies, there is a period in which you do not have to pay the premium amount on your term coverage. However, if you lose your employment and choose to go for other kinds of insurance plans, your term coverage would be included in the plan and the premium payments would be deducted from the salary. This type of coverage is more appropriate in cases where there is little chance of mortality as it gives a certain amount of assurance to the insurer, as compared to permanent insurance.
Term life insurance can also be referred to as universal life insurance. In the United States and in many other countries, this type of coverage is offered through various companies. If you have to take out a life coverage, it would be wise to research the many types of policies available and compare their terms and conditions to find the best coverage that is most appropriate for you.
If you are self-employed, it is a good idea to check out all the companies offering term life policies to find out which one offers the best rates. The best time to find this type of insurance is while you are still working and are earning money as it is a good policy during your stay with the company. If you decide to take out permanent coverage when you are already retired, you might have to pay an amount that is considerably higher than that which you had paid when you were working but with no need to consider this option if you are currently earning.
While some people might want to obtain term life policies only for their children, there are others who like to buy them to provide coverage for themselves. Such individuals may want to consider getting a term life policy that gives coverage only for a pre-defined age range. It is also possible to get insurance for your children by obtaining a term life policy if the policy has a low cost. Some insurers provide discounts for buying such a plan especially if you are married, have children, or own a small business.
Term life coverage can also be bought to provide coverage for the beneficiaries of the policy in the event that one of them dies. This type of insurance is also sometimes used as an investment option and helps provide financial security to the survivors.