The term life insurance forms the foundation of all life insurance policy. In this type of life insurance policy, the policyholder needs to pays a constant or fixed premium over a particular amount of time. Suppose if the policyholder dies within the specified period then the insurance company will pay the guaranteed money to his family members. When the policyholder didn't die within the specified period, then the coverage will get vanished.

The person who can apply for term life insurance

Since the life insurance policies are associated with dead, which makes many of the people to get scare. Some of them refused to take the insurance policy because they thought that if they are alive then they can be worth for more dead. It is not mean that if they take the insurance policy they will die soon. Life insurance policy is mainly to provide financial security to his family members when the person is no more. Suppose if you think that there are no other person to financially support your family members after your death then you can buy a life insurance policy.

If you are a single person and if you didn't have any child or any other dependencies then you can simply avoid term life insurance Otherwise it is advisable for you to buy the term life insurance.

Merits of

There are several advantages of term life insurance. Some of them are listed below

?It provides a financial support to your family members when they need it after your death.

?Depending upon the policy, it can either be convertible or renewable.

? It gradually increases annual premium as you get older.

Demerits of Term Life Insurance

There are some of the disadvantages in term life insurance. They are listed below

?It doesn't provide you permanent life insurance protection.

Different types of Term Life Insurance Policy

There are different types of term insurance policies are widely available. Some of them are listed below.

?Level premium term insurance

?Decreasing term insurance

?Renewable term insurance

?Convertible term insurance

?Annual renewable term insurance

Term life insurance is inexpensive and most financially efficient form of life insurance for most young and middle-aged people. The premiums on term life insurance policies are relatively very small when compared to other life insurance policies and the probabilities that the young and middle-aged people will die is also very small .Term life insurance policy provides a coverage for specified amount of time usually it ranges between 10 and 30 years.Term life insurance policy is suitable for many of the people because they can select a term that will cover them during their time of the greatest financial need.

Example quotes

This example is taken from the resource

http://uk.virginmoney.com/virgin/life-insurance/examples.jsp

How much cover you get for your monthly premium depends on your age and health at the time of application etc. To give you an idea, here are some examples.

Examples are based on ?100,000 of level cover and assume you're in good health.

Male

Age*Smoker?Cover amountTermMonthly premium

30No?100,00020 years'7.50

35No?100,00020 years'8.70

40No?100,00020 years'11.90

30Yes?100,00020 years'11.80

35Yes?100,00020 years'15.60

40Yes?100,00020 years'23.90

Female

Age*Smoker?Cover amountTermMonthly premium

30No?100,00020 years'6.50

35No?100,00020 years'7.40

40No?100,00020 years'9.60

30Yes?100,00020 years'10.00

35Yes?100,00020 years'12.70

40Yes?100,00020 years'19.00

*Age next birthday.

Rates correct as of 22nd October 2008