Term insurance

1. Coverage Options
Fixed Term: Policies are available for various terms, typically ranging from 10 to 30 years.
Death Benefit: The policy pays a predetermined sum to the beneficiaries if the insured dies within the term.
2. Premiums
Lower Premiums: Term insurance generally has lower premiums compared to whole life or universal life insurance, making it an affordable option for many.
Fixed vs. Renewable Premiums: Some policies may have fixed premiums throughout the term, while others may allow renewal at the end of the term at a higher rate based on the insured's age.
3. Benefits
Financial Security: Provides peace of mind knowing that loved ones will receive financial support in case of the insured's death.
Flexibility: Options to choose different term lengths based on personal financial needs.
Convertible Options: Some term policies allow conversion to a permanent policy without undergoing a medical exam.
4. Exclusions
Common exclusions may include death due to suicide within the first two years, participating in high-risk activities, or illegal activities.
5. Claim Process
Filing a Claim: Beneficiaries must submit a claim form, along with the death certificate and other required documents, to receive the death benefit.
Documentation Requirements: Accurate documentation is essential for a smooth claims process.
6. Renewal and Conversion Options
Many term insurance policies offer options for renewal at the end of the term or conversion to a permanent policy, depending on the insurer.