Augusta
VIP Contributor
It is always of essence to know how a thing works before indulging it. So it is good to understand how the term life insurance policy works so you can ascertain if it is the best fit for you.
Now, you should know that term life insurance is not forever, it comes with a specific time that will be stated by you. As you indicate interest to take this form of life insurance policy some insurers will first carry medical exam and do other inquires which will include current medications, driving record, smoking status,occupation, hobbies, and even family history.
After the above enquiries which was to also help established the premium , the insurance company will ascertain the premium which is about the policy's value, insured age, the gender, and health.
Now when an insured dies during the policy term, the insurance company will pay the policy's face value to the insured beneficiaries.
This is always a cash benefit and this money isn't taxable. The money can be used by beneficiaries as deem fit it could even be ser for the insured healthcare and funeral costs.
But if not the insured can go ahead to renew it for another term and the policy continues
Now, you should know that term life insurance is not forever, it comes with a specific time that will be stated by you. As you indicate interest to take this form of life insurance policy some insurers will first carry medical exam and do other inquires which will include current medications, driving record, smoking status,occupation, hobbies, and even family history.
After the above enquiries which was to also help established the premium , the insurance company will ascertain the premium which is about the policy's value, insured age, the gender, and health.
Now when an insured dies during the policy term, the insurance company will pay the policy's face value to the insured beneficiaries.
This is always a cash benefit and this money isn't taxable. The money can be used by beneficiaries as deem fit it could even be ser for the insured healthcare and funeral costs.
But if not the insured can go ahead to renew it for another term and the policy continues