Features of the Term Life Insurance Plan

Buying life insurance is an important financial decision that every person, and particularly the breadwinner, should make. The right policy helps to provide financial support to loved ones in the event of the untimely death of the breadwinner. It ensures lost income is covered, supporting the family financially until they get other sources of income. Therefore, an insurance cover ensures the lifestyle of loved ones is maintained. Many people fail to purchase insurance because they consider it an expensive undertaking. However, with the term policy, insurance has been made affordable. The features of the term policy include:

· Renewability

The term policy caters for a period often ranging from one to thirty years. When the term expires, you are at liberty to renew the policy. If you choose not to renew the policy, you will be able to access the benefits once the term matures. However, if you die before the term comes to an end the named beneficiaries can access the benefits.

· Accelerated death benefits

The term policy allows the policyholder to obtain cash benefits if they are diagnosed with terminal illness. This gives the policyholder the opportunity to use the money to cater for treatment among other expenses. This helps to cushion loved ones from using their savings to pay high medical costs. Therefore, term policy is recommended for people who have a short time to live.

· Spouse/child term riders

A policy with this feature gives you the opportunity to buy an insurance cover for your spouse or any of your dependent children. If you divorce your spouse or your spouse dies, the policy allows you to institute the necessary changes to the policy. Similarly, once your child becomes independent you can change the policy. This option offers an affordable way of purchasing insurance particularly if you cannot afford separate policies.

· Mortgage protection

This is an important feature, found on the term policies. If you have a mortgage of 30 years, you can consider purchasing a 30-year term policy. This will ensure once the policy matures, the benefits can be used to pay off the mortgage. This is particularly important if you die – the beneficiaries will be able to access the benefits to pay off the mortgage. Therefore, the policy ensures loved ones do not lose their home, leaving them homeless.

· Survivor support services

The term policy can also offer support services that seek to provide objective legal and financial assistance to the beneficiaries.