Advantages of term life insurance

Mandy96

Valued Contributor
There is life insurance and under this life insurance, we find the “whole life insurance” and the “term life insurance”. I will be talking about the term life insurance, specifically the advantages of the term life insurance.
What is term life insurance?
Term life insurance is a type of insurance coverage that insures the insured’s life with a contract agreement of some particular term. You can choose to be on this insurance contract for a year. Two years or even five years and after that you shall get your compensation from the insurance company. It’s just like the whole life insurance but what makes it different is that on whole life insurance policy, there is no term. That is, it covers your entire lifetime.

ADVANTAGES OF TERM LIFE INSURANCE
1. The insured has the advantage of switching to “whole life insurance” if he or she wishes to.

2. The insured will be alive to receive his or her compensation from the insurance company.

3. The insured will get a larger death payment or compensation.
 

Jamoflondon

Verified member
Yes this is so true but I really do not understand the number three of the advantages of term life insurance. How did you really mean you said the insured will get a larger death payment or compensation? Because since the insured will be alive to receive his or her payment then what’s up with death payment
 
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Godsplan

Active member
Yes this is so true but I really do not understand the number three of the advantages of term life insurance. How did you really mean you said the insured will get a larger death payment or compensation? Because since the insured will be alive to receive his or her payment then what’s up with death payment
Yeah, after reading the post l also wondered about that same point three. And truly l love the "term life insurance policy as compared to the whole life insurance policy.

Something running on mind about the point three, maybe if the insured die before the agreed term, the insurer might still compensate the insured family with the full amount.
 
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btaliat

VIP Contributor
I think the number three point will be talking about whole life insurance. In this type of insurance, the insured will be only compensated after his death. The benefit will go directly to the family or let's say his next of kins and the burial arrangement will be handled by the insurance company depending on the agreement.
 
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Lens1000

VIP Contributor
The major difference between the term life insurance and the whole life insurance is that you get to claim your benefits while you are alive. The term life insurance is better because the possibilities of getting your benefits is high and you may even use the money to build a conglomerates for yourself. The fact that you can switch it to whole life insurance makes it s better choice.
 
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Nite

Verified member
Term life insurance policy is considered as one of the most important type of life insurance plans, because it not only secures your family financially in any unfortunate event, but also provides tax benefits to yourself. One of Term life insurance primary feature is that it's quite easy to understand.
 
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Richee84

Active member
I like the way u carefully outlined your point. Though the number three point is still not clear to me. With your explanation above I think most people will prefer now to go life term insurance than the whole life insurance where mostly the insured are not the beneficiary of their hard labour.
 
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Wisdom01

VIP Contributor
Yeah this is true the insured would be alive to recieve his full benefits attached ,as term insurance would compensate the person insuring at a stipulated period of time ,and if the person dies and was unable to get the compensation , another person would get the compensation that he have place to give
 
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Chibson

VIP Contributor
Time life insurance is also very good looking at the advantages. I think it will be easier for you to migrate to who life insurance if you are a term insurance holder. It also comes with a whole lot of benefits in which the insurer stands to get in his lifetime.
 
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