What is term life insurance?
With this policy the insurance will only be given to the insured if the insured person dies within the term period. For example, if you buy 10 year term life insurance, and you do not die within those ten years, you do not get the amount of the insurance policy. Neither will you be compensated for the premiums you spent over those years. Term insurance has its advantages and its disadvantages. One of the pros is that the yearly premiums are much cheaper than whole life insurance where the policy is guaranteed. The main disadvantage is that you can lose all the money you invested in premiums. However, if you choose to look at it like paying for ten years worth of peace of mind, it is worth it.
How to guarantee your 10 year term life insurance
There are ways you can guarantee your such policy. By upping the amount you pay in yearly premiums by 50 you can get something called return of premium term life insurance. With this type of insurance, you pay 50 more than you normally would, but at the end of your policy, you get back everything you paid in Premiums. The disadvantage is that you do not earn interest on your premiums. The obvious advantage is that you do not lose any of the money you spent on your premiums. This way, if you do not need the insurance during the course of the term, you get all the money you spent on it back.
Dependant life insurance is usually served one a term basis. A dependent means your spouse or children who are depending on you for their main income. Usually children do not need to pass any special qualifications. However, usually a spouse is required to submit a medical report. There are many kinds of dependent insurance, including kinds your children can cash in on when they reach a certain age. Typically, only term insurance will be provided for spouses. If what you want is peace of mind, knowing that you and your spouse are insured, then 10 year term life insurance is a cheap and safe option.