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term life insurance

Term Life Insurance

Term life insurance is something aimed at giving you and your family some peace of mind, especially if you, the person that gets insured, is a breadwinner. The main function of this insurance is to help beneficiaries (people that will get paid at death of the insured) financially. In some cases a life insurance plan can be tied to the pension plan and the pension can make contributions to a pension funded by life insurance company (in that case it becomes a private pension arrangement). Life insurance policy is a way to take care of your estate planning needs, provide financial security for your family, protect your home mortgage etc. Life insurance can be divided into two basic types - temporary or permanent. Temporary life insurance covers the person insured for a specified period and does not accumulate cash value. A typical agreement of temporary life insurance is for one year and renewable and the company usually guarantees a subsequent policy will be issued regardless of the person's insurability.

In the past such policies always excluded suicide, but after a number of court cases the payouts are likely to occur if the insurance company does not manage to prove the suicide occurred for someone to benefit from the policy). Permanent life insurance remains in force until it matures and cannot be cancelled by the insurance company unless there has been an episode of fraud. This kind of insurance gets more expensive with age and someone who is 70 years old for instance will be required to make very big monthly payments. There is also a kind of limited life insurance called accidental death and dismemberment or AD&D insurance. This insurance is cheaper than other ones as it requires the insurance company to provide coverage only in case the person dies from an accident, but always exclude health problems and suicide. This limited life insurance however, has too many exclusions and pays out very rarely. The company may refuse to pay if the person that died put themselves as risk by flying an airplane, taking part in some dangerous sports or going to war etc. How much you will have to pay for your insurance depends on a number of factors, so when shopping for life insurance online you need to get quotes from different sources to make sure your coverage will be as comprehensive as possible.