Term Insurance Works Best for Individuals with Dependents

Term insurance is a plan that provides coverage to the individual for a specific term period as the name suggests. If the insured person dies during this specific term period of the insurance policy, then the beneficiaries receive a death benefit which varies depending on the coverage amount chosen.
This plan is less expensive than most of the other life insurance policies. But, unlike most other life insurance types, offers no cash value. There are many different types of such policies available for individuals with the term ranging from 10 to 30 years or more depending on the insurance provider. They offer level premiums for the duration of the policy.

One of the biggest drawbacks of term insurance is that while the premiums remain at a set level for the term selected, after this period the premium generally increases. This can make the policy more costly in the long run. One of the advantages of the policy is that most providers offer a built-in privilege to convert policy to a permanent plan. This offer is not tied to any changes in the health conditions of the insured person.
Term insurance must be renewed at the end of the term or else the policy premium goes up. Many individuals prefer buying because it offers them temporary insurance protection at low cost and is renewable without the insured having to undergo additional health checks. The fact that most insurance providers allow conversion to permanent insurance adds to the convenience factor.

Another benefit is that it can be easily converted to another type of insurance that is permanent. This makes it easy for families to afford more coverage at a lower cost initially. The policy can be converted to another type of permanent insurance such as whole life or universal life.
If the insured person dies during this specific term period of the policy, then the beneficiaries receive a death benefit which varies depending on the coverage amount chosen.The fact that most insurance providers allow conversion to permanent insurance adds to the convenience factor of having a insurance.

Term insurance is generally regarded as the purest and most uncomplicated form because it is easy to understand, maintain and even convert. The fact that life is unpredictable is the reason why individuals with families and dependents. It acts as a safety net for them and also it is the cheapest form of life insurance available.