Term life policies are meant for people who desire to have pure insurance and security for their family. If you are uncertain about the future and want to be insured for a short term with low premium rates, then going for a 10 year term insurance is the best deal. It is preferred due to the benefits it offers.
What Does the Insurance Offer?
The 10 year term insurance offers death benefits as soon as it is bought. You will have to pay level premiums for 10 years according to the plan you opt for. Companies allow paying monthly, quarterly and even yearly premiums. However, paying yearly premiums could come out to be a huge amount. Therefore, people usually opt for monthly payments.
In case you die within the period of the insurance, the company will pay the amount to the beneficiary nominated by you and provide financial support when you are not there. There can be more than one beneficiary to one policy. Also you can nominate a charitable trust for all the money you leave behind. This is usually done by people who do not have anyone in the immediate family.
The death benefits paid can be used by the family to pay off any loan or mortgage you were entitled to pay. This will help them have protection against loan and mortgage companies which sell off person’s property or belongings to recover their money after his death.
Provisions by Companies
You can choose amongst certain provisions that companies allow. These help in increasing the value of the insurance policy.
- Disability: Here in case you are disabled and cannot work anymore. This provision makes the company pay premiums on your behalf, whatever duration you had bought the policy for.
- Accidental death: If in case you die in an accident and had already opted for accidental death provision, then the company will have to pay double the amount of the death benefits.
What Happens After 10 Years Are Over?
When you have paid the premium throughout the time period and you continue to live after the policy expires then the company gives you three different options: renewal, return of premium and conversion.
Renewal is about continuing with the policy. Companies allow renewal for another 10 years with a slight increase in the premium plan. Also, if you do not wish to continue with the policy, you can ask the company to pay back the premiums you gave during the 10 years. These premiums do not have any interest added to them and are tax free. Thus, even if the money does not increase, you will have what you have spent in last 10 years. In case you feel that you have earned enough money in last 10 years and that you will have attained financial stability, then you can opt for conversion. Once the term life policy is over, you can convert it to whole life insurance and stay insured till the time you are alive.
One can get to know more about the features and benefits a 10 year term insurance by visiting TermLife-Insurance.com. It helps in fulfilling the dream of having protection for your family.