The existence of term lfe insurance services limited is a
clear indication that financial planning does not end with when one dies. Provisions have to be made for finances
that will cater for those who are left behind. Individuals who have dependents have obligations to take care of
them and this is why efforts are made to cater for expenses on mortgages, rent, utilities, college fees among other
expenses that continue even after the death of an individual. Term life insurance is a form of insurance cover that
is popularly used in instances where there is need for lump sum financial security as opposed to investment value.
This is because time life insurance services do not come with cash build up but only with death benefits.
The difference between whole life and term lfe insurance services limited is that the latter offers a
premium guarantee that is used for a given period of time hence the word ‘term’. Once this duration, whether it is
a year, 2 years, 5 years, 15 years, or more is over there has to be the renewing of a term life insurance
policy. This is done almost in the same way as the initial application for term life insurance services as the
policy holder is requested to submit results of medical tests among other tests. These are used to evaluate the
risk levels of covering a policy holder. This is why in term life insurance services companies the premium amounts
keep on increasing as with age, medical tests are highly likely to indicate factors such as health complications
that increase the risks of an insurance policy. Term life insurance services agencies also work via the assumption
that the younger the policy holder is, the lesser the chances of him/her dying before a term expires are low. With
this assumption the charges on premiums are maintained low but as old age sets in the premiums go up as insurers
know that chances of a policy holder dying before a term is complete are higher. In the event that a policy holder
dies before the term is over then the stated beneficiaries can claim their benefits. However if the policy holder
does not die within a set term the policy becomes null and void unless it is renewed for another term or unless it
is replaced with a whole life insurance policy.
Despite the disadvantages of term lfe insurance services limited as compared to whole life insurance
services, the former comes with a lot more options. In term life insurance services there are options for
convertible term, decreasing term, renewable term, and level term policies. These affect the amount of premiums
that are paid, the duration of a given terms, and the amount in benefits that can be given at the end of a term.
For instance in a decreasing term policy a policy holder will pay fixed premium amounts even though the value of
the benefits will be lower over time. This may seem disadvantageous but this form of term life policy works best
for benefits that are set to pay decreasing amounts of mortgages over time. A convertible policy from term lfe
insurance services limited is not strict on resubmission of medical reports even at the time when a term life
policy is substituted for a whole life policy. These options by term life insurance services companies thus offer more flexibility for policy
holders.
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