Term Life Insurance

Term Life Insurance has become a popular form of life insurance because policy holders are covered for large benefits, in the case of death, relative to the premium that is paid. Term Life Insurance is also one of the simplest forms of insurance to understand because it’s just like any regular insurance such as car or home and contents. Once your premium lapses you can choose to renew or simply cancel the policy. If your premium is not current, you are not covered for any death benefits. As you can see, Term life Insurance differs from other forms of life insurance, such as permanent life insurance, because premiums build no cash value.

Of course the majority of life insurance policies also carry restrictions around the circumstances of your death, for instance if there is evidence that you have committed suicide then the policy is usually void and your loved ones may not be paid the claim.

Is Term life Insurance Good for Me?

Term life insurance is particular good for those on a budget who wish to be covered for life insurance, and be eligible for high benefits, during certain times of their life, but don’t necessarily want ongoing coverage beyond that. For example, let’s say your family has a significant debt, such as a home loan, that cannot be serviced if one of the family’s income streams were lost as a result of a tragedy. In such cases, Term Life Insurance is an excellent product because, in the case of death, high benefits are paid for a relatively small premium compared to other forms of life insurance. Once you have serviced all your debts, and have built a significant asset base, the need for Life Insurance may not necessarily be there. If you decide your circumstances have changed, and you no longer need Term Life Insurance, you have the flexibility to stop paying your premiums and that’s it.

Another thing to keep in mind is that, Life Insurance is not solely for the breadwinner of a family either, and it is also important to consider cover for a spouse caring for children along with the income earners policy. These policies cover child care costs and other costs related to caring on a day to day basis for the family and will be paid should anything unfortunate occur to the carer.

At Rate Detective we have secured the services of some of Australia’s best life insurance and income protection professionals that are available for a free one-on-one consultation to identify your needs. If you are interested in Term Life Insurance, or any other forms of life insurance, please feel free to make an enquiry and we will put you in touch with one of these professionals.