Term Insurance Policies Also Find A Place When Covering Business Situations

Category: Finance, Insurance.

Term life insurance has been described as a bet you do not want to win, but if you do, your family will be eternally grateful you gambled! Term life insurance comes in many different forms and probably we come across it most often when buying a home.

Simply put, term insurance is a bet with the insurance company that you will die and make a claim within a set period of time, known as the term hence the name, term life assurance. Here we have a mortgage for an amount that we know, that is going to last for a term that is set at the outset so it becomes very easy to see how much and for how long we need an insurance policy to cover the debt in the event of our death. We may move home, borrow more money, change the mortgage for a new kitchen or suffer changes in our financial situation that require economies to ensure the mortgage gets paid to keep the roof over our heads. Mortgage protection policies tend to have a variety of features that can be used as and when our mortgage situation changes. Term insurance policies also find a place when covering business situations. Now just consider whether you want your business partners spouse suddenly turning up to your business and telling you how they want you to run the business? Frequently, the death of a partner in a business will cause an issue in that their share of that business will be left to be inherited by their beneficiaries.

Could you work with them? Under these circumstances it makes a great deal of sense to establish life insurance cover for the partners. Can they actually work in the business anyway? The insurance proceeds will then allow the surviving partners to simply and conveniently buy the deceased partners share of the business. Travel insurance is another form of term insurance though the term may be as short as a day! The business is not subjected to unneccessary disruption and the deceaseds beneficiaries receive the value of the business shares without the need for the business to be sold or subjected to potentially crippling debt taken out to pay them off.

Travel insurance will very often include a death benefit but the primary purpose of coverage here is to ensure the insured receives proper medical treatment where they are, arrange for their, failing that repatriation and in the event of death, ensure the body can be transported home for burial. Insurance companies do this to minimise the risk to themselves posed by paying out claims, which in turn directly affects the premiums that are charged. It is not uncommon to see term insurance offered to exclusive groups of people. If a group of people, say of a certain age, or particular health bracket e. g. non- smokers, wish to benefit from more advantageous premiums then it makes sense that they look for insurers offering special terms for these exclusive groupings for insurance purposes. First of all establish what you need the cover for, how much and under what terms which will then lead you to whether a term insurance contract is right for you. Finally, term insurance has a place for most of us in our lives at one point or another. Following this simple principle will help make your negotiation of the insurance maze that much more easy.

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