Fathoming Term Life Insurance
Fathoming Term Life Insurance
Life insurance can be divided into two categories. Whole life cover and term life cover.
Term cover is insurance on the life of an individual for a certain period of time. It differs from "whole life cover" in that it is good, or in effect and payable, for a specified period of time only.
For example, a 10 year life policy is good for a 10 year period only. After the 10 year period it is worthless. Term cover has no cash value and accrues no interest. The premiums paid are the cost of the coverage. They are not divided and accrue no interest. In whole life policies, part of the premiums are set aside, and paid a certain annual interest, at usually a low rate, and the policy has and develops a cash value.
Term cover is generally less expensive than whole life, and much easier to get. Many companies do not require physical examinations for term insurance, and are willing to accept physical conditions that would be prohibitave in the case of whole life insurance. The dollar value of coverage in term life cover is usually far greater than that available with most whole life policies.
Term life cover policies are very often used by employers to insure the lives of their key employees. By having their lives insured and naming the employer as the beneficiary, the Co. can insure it's investment in the employee.
Term life insurance policies are also very popular with older people. The costs are more manageable and the benefits great for the relatively short period of time the policy is in effect. This gives them the coverage they desire for a reasonable period of time, at a price they can afford. Visit a special page we have created for insurance quote australia. Also make sure to visit Tower Life Cover.
When thinking about life cover, one must ask himself what his objectives are. Chances are that most people will want the most dollar coverage for the least cost. The interest paid on whole life policies is not very high. It usually will not exceed the rates paid by banks and other savings institutions. So, is it a good investment? If the decision is made that other investment vehicles will not only yield greater dividends, but grow in value on their own, then we are caught in a dilemma. One solution would be to secure the desired insurance coverage through term life insurance, at a low cost, and invest the balance into a more aggressive vehicle. Further, because of the relatively low cost of term insurance, a greater dollar value could be had at the same price as whole life cover.
We see that term life cover can serve many needs. It can provide many options to achieving the goals of life cover in general. It can open doors for the use of investment capital that would otherwise remain closed. We can assure ourselves and others the availability of the necessary monetary means to carry on if our lives are unexpectedly terminated at an early age. Term life insurance is a great insurance tool. Nightlife in Koh Samui, After Sunset Fun and Frenzy Fire safety can be the difference between life and death Going Online For A Life Insurance Quote Life Insurance Policies Make Sense for Everybody, Anybody Definition of a Happy and Successful life How to Succeed In Life And Get Ahead Florida Term Life Insurance - What is Florida Term Life Insurance Best Life Insurance - Read About It Best Life Insurance Companies The Best Life Insurance Policy Angioplasty and Stent Implementation to Save Your Life Yearly Horoscopes and Calendars, Brings a Lot of Prediction about your Life Silica Gel Packets – Their Shelf Life and Reuse Options