It is a very old saying that insurance is sold not bought. This notion has developed because most of the people are not ready to accept the fact that they can die suddenly or be permanently affected by any kind of untoward happening in their life which can adversely affect their earning capacity.
1. What is the need for insurance; there are other options for savings for the rainy days?
This is a very common question that arises in the mind of every individual before purchasing a policy but they do not realize the fact that there is a vast difference between other types of savings and the savings that are done through life insurance policies. In other types of savings the additional benefits like life coverage, critical illness coverage and provision for terminal illness is not available which can be obtained only through life insurance. Moreover you can get tax benefits not only during the period of the policy but also on the lump sum amount that your family will get at your sudden demise during the term of the policy. If you feel that you have invested lots of money in other types of savings then you can easily take a cheap insurance life term policy.
2. What are cheap insurance life term and its benefits?
Life insurance policies that are taken for a particular duration is known as term insurance and the premium that is paid on this type of policies are very low. The best example for cheap life insurance term are the policies that are sold in the market by the insurance companies in the name of health care, family care and other types which provide for all types of medical expenses if a person falls ill within the term and has to be hospitalized or has to bear a huge amount of medical expenses. These types of policies help him to keep his savings intact and provide peace of mind while he is recovering from his illness. There are other types of cheap term life insurance like mortgage insurance and critical illness insurance. Moreover the family members do not face any kind of financial crisis in these adverse situations.
3. When is it preferable to purchase cheap term life insurance policies?
Cheap insurance life term can be bought at any time but while purchasing these types of policies you should always bear in mind that these policies do not give any type of returns if the incidence that is mentioned in the policy does not take place. So these policies can be bought if you already have other types of policies that not only give life coverage but also act as a saving device as you can get back the money after the maturity of the policy. There are some term policies which can be renewed after the expiry of the term but the renewal rate of premium may be higher than the older one as other factors like age, physical condition and habits have a great effect on the premium.
You can take the mortgage insurance which is also known as decreasing insurance for a particular term. This type of term life insurance can be taken when you feel that your family should not be burdened with the repayment of the mortgage loan if you’re earning decreases or stops completely due to critical illness or death. Cheap Insurance life term can also be bought by persons who are in their middle age or in the range of fifty to fifty five years as this will help them to bear the financial crisis which mostly occurs in this age due to the decreasing capacity of earning the same amount of money that they used to earn in their younger days. There are various other reasons for which cheap term insurance can be bought.
4. How is it possible to ensure that the best deal is being obtained while purchasing cheap insurance life term?
Here is the cache as this is the point where you have to spare some of your precious time to collect all the details about the types of policies different companies are offering under this category and the other fringe benefits that they are providing within their policies. It is also essential that you compare the premium rates that are applicable to the same type of policy in different companies and then choose the one which has more benefits at a lower rate of premium. But before finalizing the deal you should verify about the reputation of the company and find out about their after sales service condition as there are many companies which make high promises but do not provide the facilities once the deal is finalized. If you have any doubts you can consult the insurance broker who will give you unbiased advice as he deals with many companies so he will not have any vested interest with a particular company.