Term life insurance covers you for a period a stated period of time. If you die within the term of the policy, your beneficiaries collect. The policy can be renewed before the term is completed, but the premiums can change depending on your health. Term life insurance policies typically have the lowest premiums but do not cover you in every eventuality.
Life Insurance FAQ's
Frequently Asked Questions
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What is term life insurance?
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What is permanent life insurance?
Permanent life insurance covers you for the entirety of your life, but typically has higher premiums because of this. These policies usually have a death benefit, as well as a cash savings element.
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How much coverage do I need?
This depends on how much security you need and what premiums you can afford. Speak to an expert to get an idea of what works best for you.
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Who is eligible to be the beneficiary of my policy?
As the policy holder, you can name any beneficiary you want.
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What do I get when I buy life insurance?
You are guaranteeing that if you die within the limit of the policy, your beneficiaries will collect the on the insurance.
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Are physical exams required to purchase life insurance?
It is not mandated, but most reputable insurance companies will require an exam. If there is no exam, premiums will likely be very expensive.
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What happens if I miss my premium payments?
There is typically a 31 day grace period within which you can still make the payment. If no payment is made by the end of the grace period, the insurance company can either cancel the policy, or withdraw the money from the cash value of the policy.
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What is an accelerated death benefit?
This is money that can be withdrawn from your policy while you are still alive. This money will be deducted from the death benefit and is usually accompanied by an interest charge.