Term life insurance – Things that are important and you must know
Ever wondered who will pay off your credit card bills or car loan after you are dead? Who will take care of your family expenses and fund your child’s college education, pay your medical bills and your funeral expenses? Has this question set your pulse rate rising? Well, if you have a term life insurance you need not worry about anything.
After the insured’s death, the family members get a death benefit, which can help them pay off standing bills or any kind of loans as well. In fact, term life insurance covers burial or funeral expenses also. Sounds good. Isn’t it?
What is term life insurance?
Term life insurance is the life insurance that offers insurance coverage at a predetermined cost of money for a specific period of time. The term can be one year, five years, ten years or even 20 years. It is a legal agreement between the insured and the insurer that after the death of the insured, his family will be entitled to a death benefit. The death benefit is the money that the insurance company hands over to the beneficiary in return for the premiums that the insured had been paying for so long.
You are not eligible for the death benefit
if you have not been paying the premiums regularly or if the policy has expired. This means that the beneficiary will get the money only if the policy is in force.