Most people are familiar with the concept of life insurance. It is a contract between you and an insurance company. If you die, the company pays out a death benefit to your beneficiaries. The death benefit can be used to cover final expenses, pay off debts, or provide for your family's future financial needs.
Term insurance is the most basic and affordable type of life insurance. It is also the most popular type of policy. With term insurance, you are insured for a specific period, typically 20 or 30 years. If you die during that period, the death benefit is paid out. If you live beyond the term of the policy, it simply expires and you are no longer insured.
Third, it is important to understand the different types of term insurance policies. There are two basic types: level term and decreasing term.
With a level-term policy, the death benefit remains the same throughout the term of the policy.
With a decreasing term policy, the death benefit decreases each year. Decreasing term policies are typically more affordable, but they may not provide enough coverage for your family if you die early in the policy.
Term life insurance claims process
Fourth, make sure that you understand the insurance company's claims process. You should know how to file a claim and what documentation you will need to provide.
Review your term policy regularly
Finally, it is important to review your policy regularly and make sure that it still meets your needs.
EGGRS Term Life Insurance
Have you ever thought about getting life insurance? If so, what type of policy are you considering? Let us know in the comments below.