Friday, 17 December 2010

Importance of Term Life Insurance Policies

You work hard and support your family. You keep a portion of your hard earned money as investment for yours or your family’s feature needs. You may be the only bread earning member of your family or you and your spouse are working. Even if both of you are earning members your income may be enough to meet all your needs. In such a condition most of us are not thinking about any unfortunate events which may occur in our life. These uncertain events may make us disable to work or may lead to death. Did you ever think such a possibility? I am not a pessimistic. But just make you remember the possibilities. In such a condition you can think about insurance policies which may be helpful to protect you and your family.

Now insurance policies are expensive and an ordinary person could not easily afford it. I also thought that we deposit premium with much difficulty and when it is matured the amount which may receive will be very low due to inflation. Suppose we are depositing 5000 bucks for twenty years and at the maturity after twenty years you will get 100000 bucks and bonus or anything else as per the terms of the policy. When we compare these 5000 bucks with the maturity amount after twenty years, it won’t be anything. But when I realize the importance of insurance in our life, I can afford these 5000 bucks for the security of myself and my family.

Yes, insurance policies are important to secure you and your family to face any unforeseen unfortunate events. Without insurance policy we and our families are in uncertainty. But we have to escape from the heavy expenses of insurance premium. There is a good way that you can opt for any cheap term insurance which gives you enough protection with a very low premium. Most of the insurance agents will not tell you about such policies. Because, the premium amount will be very less, the commission also will be less. When I planned to take an insurance policy I have approached a known insurance agent. He explained me about so many insurance policies. But as a financial person I have calculated the benefits of all and refused all of them. At last after so many discussions he informed me about a term insurance policy which is enough to satisfy me with the premium and the outcome.

Yes term insurance policies may not be attractive at the first site just like most of the arranged marriages. But after wards, when you know about all the features and benefits you will love it. This policy will not gives you attractive offers such as getting money back after certain intervals etc.  But offer a long term guarantee with sufficient amount by spending a very less premium. Let us see some features of these term insurance policies.

Some insurance companies allow adjustable premium in term insurance. With this features you can increase or decrease the premium amount as per your requirements and it is only according to the terms of the insurance policy.

These policies cover your life with a cheap premium amount and can say that cheap life cover. Some insurance companies allow you to convert this cheap life cover to whole life insurance. But only if the terms of insurance allow so, it depends according to your age and so many other factors.

It is better to start insurance at an early age, because the younger people should pay lesser premium than elder people, and the first premium will be the premium amount for ever. Take this insurance policy for a long time, and then you can get the protection for such a long time with the lower premium. I have taken a term insurance policy at an early age and the term covers till my 60 years of age and there is an additional premium free protection for another 10 more years.

The main disadvantage is that the maturity amount of such policy is very less. Only a certain percentage more than the premium amount you paid. But you can invest the balance money you save from lover premium, in any other investment schemes and can make more money than other insurance policies offer.

So do not forget to take an insurance policy which gives you enough life cover and start it at an early age as possible and secure the future of you and your family.

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