Advancements made to society have meant that there have been corresponding advances made in the collective standard of living that individuals are awarded with. These positive changes have been accompanied by ever-increasing daily expenses. Healthcare too has skyrocketed in terms of prices commanded and off shooting these expenses is no easy task. In order to provide your loved ones with some amount of financial protection, individuals are advised to invest in a term insurance plan. This form of insurance provides their loved ones with sufficient coverage should they need it in the future.
What is individual term life insurance?
Term life insurance plans provide individuals who avail a coverage based on the premium paid and is valid for a specified period of time as selected by them for a life cover amount opted. In the event that an individual insured under this policy dies within the policy term, the insurance company would pay a death benefit to the beneficiary/nominee of the insured individual. This payment may be in the form of a single lump sum and / or may be spread across several months for a fixed period of time as per the product terms and conditions.
A number of factors are used to determine what the premium paid ought to be. Term insurance premium calculators are used to provide prospective buyers with an estimate of what their coverage would be. Information that is considered when accounting for the same includes age, gender, medical history, lifestyle preferences, current income, the anticipated annual increase in income, anticipated year of retirement, and so on.
What is group term life insurance?
Group term life insurance is a form of term life insurance under which one contract is issued that provides coverage to a number of people. Most often, companies may choose to avail of this form of insurance to cover their employees. Here, the contract is assigned to the employer who may then offer the coverage provided under this plan as a benefit to their employees. Employees are then entitled to a base amount of this group coverage