So, how does it work?
Here is a step-by-step breakdown of how term life insurance works:
Step 1: Determine the coverage amount. This is where you figure out how much coverage you need to take care of your family’s financial obligations and future expenses.
Step 2: Choose the policy term. This is where you decide how long you want the policy to last. Typically, term life insurance policies last anywhere from 10 to 30 years, but there may be other options available that better fit your needs.
Step 3: Select the designated beneficiaries. This is the person who will receive the payout from the policy if you pass away during the policy term. Usually, people choose their spouse, partner, or children, but you can choose anyone you want.
Step 4: Choose between fixed or adjustable sum insured. This is the amount of money that will be paid out to your beneficiary if something happens to you. Depending on the policy, this amount may stay the same or change over time (which is why it is important to read the terms of your policy!).
Step 5: Pay the insurance premium. This is where you make monthly or annual payments to keep the policy active. The amount you pay will depend on a few factors, like the coverage amount, policy term, and your age and health.
Step 6: Benefit payout. If something were to happen to you during the policy term, your designated beneficiary would receive the payout from the policy. This money can be used to cover expenses like mortgage payments, university tuition, and living expenses.
Step 7: Expiry. When the policy term ends, the cover ends too. At this point, you can choose to renew the policy or convert it to a permanent life insurance policy if you need more coverage. But if you pass away after the policy has expired and you haven’t renewed it, your beneficiaries won’t receive a payout.
Feeling overwhelmed and don’t know where to start? Don’t panic, we’re here to help make every step a breeze. Uncover a policy quickly and easily – no unnecessary questions or jargon!