Cheap Term Insurance Buying Tips

By Author: Arindam Chattopadhyay
Total Articles: 4
Comment this article

If you have purchased life insurance, probably you the best decision for you and your family. Not only does it protect loved ones, who depend on you for care, in case of your unexpected demise; but it also contributes to family income after you stop working. There are many expenses, which may come forth after your death. These include financial commitments for mortgages, pending health bills, college fee of children and even funeral costs.
Normally, an insurance agent would advise buying an insurance policy that will mature to more than five or ten times your usual yearly income. Still, the insurance amount bought by various people differs according to the expenses of their lifestyles, financial commitments, debts, assets and number of dependants.
Therefore, before deciding on a policy, it would be the best if you take the advice of an expert and decide what you want from your life insurance policy. Insurance makes one of the most important parts of your financial planning and thus it is best to study and research the topic before you go for the actual choice.

You can get a cheap term life insurance policy ...
... for a specific period of time, such as 10, 20 or even 30 years. Some Term Life policies are renewable, such as "Annual Renewable" and "Guaranteed Renewable". This is going to depend on your own personal financial situation and needs.

Here is a list, of a number of reasons, which might persuade you to go in for this all-important decision.

1. The foremost reason, goes without saying, is that a well-planned life insurance policy financially protects your family in case of your sudden death. They will have the wherewithal to pay off mortgages and unexpected bills. It also insures an income for daily living costs.
2. It furnishes your family with tax-free cash, which may go towards paying estate or death duties. It helps in protecting your estate.
3. It can be a good savings tool, by providing a constant yearly income to you after your retirement. (In case, you don't die prematurely!)
4. Certain insurance policies have a rider component where the policy encompasses children or spouse. This will help in case of critical ailments.
5. A good and legal insurance policy will give you a better credit rating if you want to take a home or business loan. It will also hold you in good stead in case of health insurance purchase.
6. The cash worth and death benefits of an insurance policy cannot be touched by creditors, in the event of insolvency.
7. It helps protect businesses against financial losses in case of the premature death of a partner.
8. Term life insurance offers both protection and money back policies at planned intervals.