Term Life Insurance Quotes Online
What do you mean by the term Insurance Demystified
Insurance is a vehicle through which uncertain events can be covered. It is a mode of transfer /sharing/avoidance of the risk arising due to a certain eventuality, which cannot be predicted beforehand. For insurance to come into the picture the future event should be uncertain. Today, insurance is available for every uncertain event, be it for avoiding accident during travelling, avoiding the costs of treatment due to ill health, avoiding the risks of having to pay your child’s fees, avoiding the risks of having to take care of your aged parents. You name it and there is an insurance policy for it. This is because cheap life insurance Ontario Canada is easily available online.
What is term insurance
A term insurance policy or a term insurance plan is a type of life cover that provides cover for a pre-defined period. If the insured expires before the completion of the period, the benefits accruing out of the policy are paid to the nominee named in the policy document. Protecting one’s family is always one’s top priority. This protection has also to be sought from loss of income. A term policy seeks to replace one’s income. In other words, if your father has taken the policy on his life and he expires then the death benefits accruing from the policy are paid to the nominee named in the policy document. A number of websites today offer term life insurance quotes online Canada.
What are the benefits of term insurance
The following are the benefits of a term insurance plan:
- Whole life cover at a nominal cost
- Total of all premiums paid along with guaranteed additions as death/maturity benefit
- The policy accumulates cash value over the years
- Helps replace income of an individual
- Offers death protection at a fixed rate of payment for a limited, specific period of time
Is term insurance necessary?
Looking at the benefits elaborated above, it appears that a term insurance plan is necessary. However, before any decision is taken it is important to look at its disadvantages too. The following are the disadvantages of a term insurance plan:
- Insurance needs at higher ages cannot be met economically with term insurance
- At older ages, one cannot opt for this policy because not many companies offer it beyond the age of 65
- Term insurance will not help you save money for the education of a child, your or your child’s marriage, retirement needs, etc.
- It will not help you provide income for the capital needs of the family while you are living
- Term insurance is a without profit plan and therefore cannot beat inflation
All said and done, a term insurance is an important element in the insurance picture, however, it remains to be seen how effective it will be in meeting various needs of an individual. With increasing modernization, this plan is becoming increasingly ineffective to cater to the needs of the modern individual.