Investing in a term policy is one of the preferred ways to protect your family from financial troubles after your death. That is not all. There is absolutely no dearth of options and variations when it comes to term plans and they are very much customizable according to your needs and requirements. If you are wondering, what it is, continue reading to find out more about guaranteed life insurance plans.
What is term insurance?
Before we get into the specifics of guaranteed life insurance, let us quickly look at the concept of term insurance. Term insurance is essentially a contract between you and an insurance company, where the insurer offers you a life cover for a certain period. In exchange for this life cover, you are in turn required to make regular payments to the insurer in the form of premiums.
In the event of your death during the specified period, the insurance company will pay out a certain sum of money, known as the death benefit. The death benefit may then be used by your beneficiaries to tide over any losses in income they might have to suffer because of your demise.
What is guaranteed life insurance?
Now that you know what term insurance is, here is something that you should note. When applying for an online term plan, you will be required to make certain declarations and answer questions regarding your health. Some insurers will even ask for a medical exam before granting a policy. Many insurance companies do not offer term plans to individuals who are sick or who already have pre-existing medical conditions. Additionally, in an event where the insurer finds out that you have made false declarations regarding your health, your term policy might even be terminated and you or your beneficiaries would no longer be eligible to receive any death benefits.
However, with guaranteed life insurance plans, there is no such requirement. You will not be asked to make any declarations or answer questions regarding your health. In fact, even individuals with pre-existing medical conditions and diseases can take out a guaranteed life insurance plan. To put it in more simple terms, the insurer cannot terminate such an insurance plan as long as you continue paying premiums on time.