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Instant Term Insurance Policy - When Should I Go for It?

Instant term life insurance cover is an insurance cover that has a very basic structure of coverage. This cover only provides coverage subject to the term of the policy. It is possible to apply for this type of policy over the internet, and this makes it very convenient. Just like all other policies, here you will be expected to make payments on a regular basis, a figure that you will be given by the insurance company, depending on the policy.

When the holder of the policy dies during the specified period, then the beneficiary is fully entitled to the benefits. The death benefits in this case do not have a savings component meaning that there is no accumulated wealth in relation to the premiums. This means that what you are paid at the end of the period is equal to what was contained in the policy. If you live beyond the term stated in the contract, you are no longer entitled to claiming the accumulated amounts from the policy. This clearly means that this policy does not have an exit approach. In addition, when the insured person dies after the term is over then the beneficiaries are not entitled to any death benefit.
Instant term life insurance policy is advisable for healthy people with an inadequate income. Normally the rates of the premiums are very low, when you compare them to a permanent insurance contract. This type of insurance policy is essential for people who want their immediate family to continue well, in the event of their death. It is also the best option for a person who is unable to get premiums that are more expensive.

Types of term life insurance policies

Renewable Term Policy

This type of policy is renewed at the end of the term agreed. The renewal is automatic and you do not have to go through the bureaucracies of getting a new cover. In this case, the new premiums are low.

Level term Policy

This one has premiums that are uniform during the whole term of the agreed policy. In other cases the premium rates are fixed, however, they can be adjusted after a given period.

Increasing/Decreasing Term policy

In this policy, the amount of death benefit given to the beneficiary decreases or increases with time. However, the premiums are constant during the term of the policy.

Convertible Instant Term Life Insurance Policy

This kind of policy gives you a right to convert a part of the policy into a permanent one. This is useful for individuals who might be able to pay higher premiums in future.

Before you subscribe to an insurance policy, you should research the most appropriate policy that fits your lifestyle and offers the best guarantee for your beneficiaries.