Are you one of those people who are paying a lot of money for your insurance coverage? Contrary to what you might be thinking, there is no need for you to spend a fortune on insurance premiums to get enough coverage. If you want to get adequate protection at a lesser cost, go for term insurance.
What Is Term Insurance?
Term insurance is designed to last for a certain period of time. For instance, you can design your insurance policy to last for 5 years or until the time when you retire. Moreover, this type of insurance is needs based so you can set your coverage to increase or decrease over a period of time. The best part about it is that during the relevant term of you insurance, your premium rate remains fix so you need not worry about price escalations and such.
Since term insurance will last only for a certain period and only covers specific situations, insurers assume only limited amount of risk. As it is, insurers generally offer lower premium rates for this type of coverage.
Like any other forms of insurance coverage, term insurance satisfies claims against what is insured as long as you are up to date in paying your premiums. Once the term of your policy expires or you fail to pay your premiums at the appointed time, you lose your coverage. If you do not want to be caught off guard, make sure that you pay all your premiums on time.