Fixed Term Life Insurance Explained
Title:
Fixed term life insurance explained
Word Count:
423
Summary:
The importance of having adequate life cover should never be underestimated – and the solution may be in taking out fixed term life insurance cover.
Keywords:
Fixed term life insurance,life insurance,uk insurance
Article Body:
The importance of having adequate life cover should never be underestimated – and the solution may be in taking out fixed term life insurance cover.
But first of all, why is life insurance so important? Sadly, many people see it as an unnecessary expense, thinking that once they die, why will they need the money? However, life insurance provides financial protection for the loved ones you leave behind.
For example, if you died tomorrow, would your partner be able to meet the monthly mortgage repayment and day to day bills on one salary alone? Would they be able to live the same lifestyle without your salary? Or would they need to sell up and downsize, possibly uprooting your children in the process?
It is unlikely that they would be able to cope financially on just one salary alone – and nor would you want them to be put under financial stress while coping with their grief.
The positive news is that the life insurance doesn’t have to be expensive – and fixed term life insurance can be fairly cheap.
Fixed term life cover is insurance that pays out a lump sum should the life insured (ie. the policyholder) die during the term of the policy. It is a simple and probably the most inexpensive form of life insurance cover available.
This is because if the policyholder (or policyholders in the case of a joint life policy) survives the term of the policy, it expires and no payment is made. As the lump sum payment is only made on the death of the policyholder, this makes the life assurance premiums less expensive than some other life insurance plans.
Fixed term life insurance can also have additional benefits such as payment of the lump sum upon diagnosis of a terminal illness (such as cancer) during the term of the policy.
The term will normally fixed to match your personal financial circumstances - for example, if you have twenty years to go on your mortgage, then you need life insurance to cover at the least the period until your mortgage is paid off. Or you may want it to run up until you plan to retire.
As with all insurances, do shop around to find the right deal for you – you’ll be surprised how much prices can vary from insurer to insurer even though they are offering the same level of cover and benefits.
Finally, if you are unsure about any aspect of your chosen cover, then speak to your life insurance provider or seek independent financial advice.
More Articles
Do You Really Need Disaster Insurance
What Does Insurable Interest Mean On A Life Insurance Policy
Announcing The Best Guarantee In A Long Term Care Policy
Understanding Insurance Term Insurance
Timing Is Everything Especially With Travel Insurance
Understanding The Medical Insurance Review Process The Five Key Steps In Medical Insurance Review
Related Products And FREE Videos
More Articles
A New Idea To The Health Insurance Crisis In America
... go without health insurance is nothing less than a crisis in this country today. We have fallen into a vicious cycle over the last few decades in which health insurance premiums have become too expensive for even a middle class family to afford. This in turn results in the inability of the uninsured to ...
Discount Health Benefits Plans A Sensible Alternative To Traditional Insurance Plans
... whom can t afford the high-priced insurance premiums being offered. In some states, there is an epidemic of children whose teeth are slowly rottening due to the lack of proper dental care. To help bring relief to this growing crisis, discount health care benefits providers have emerged. These companies ...
Top 5 Ways To Save Money On Your Auto Insurance.
... insurance experience. Tip Number One: Consider Your Vehicle's Value Let's face it, automobiles depreciate (or lose value) very quickly. When you drive your vehicle from the car lot brand new, the "new" value goes down suddenly to a "used" value. No matter how well you take care of your car, the value ...
How To Get Cheap Auto Insurance
... really matters most. Just one ticket for speeding can raise your auto insurance rates by over thirty percent a year. So you can see that it is best to obey the traffic laws at all costs no matter what. This will give you the very best cheap auto insurance with most companies. There is the matter of shopping ...
Long Term Care Options In Florida
... important for many of these older Floridians. The Florida Agency of Health Care Administration (AHCA) regulates Health Care Facilities throughout the state and also administers Florida's Medicaid program. Below are a few of the long term care facilities regulated through AHCA: Assisted Living Facilities: ...