AFFORDABLE TERM LIFE INSURANCE QUOTES

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Understanding Affordable Term Life Insurance


There are many commercials that pop up on television and radio promoting the value of getting an affordable term life insurance quotes. Now, most people have a clear understanding of what a term life insurance quote entails. However, they may be unaware what the concept of term life insurance centers on. For those that may have a number of questions regarding this form of coverage, the following is a brief overview of what it entails.


As with other forms of life insurance, term life insurance centers on offering a “death benefit.” That is, when the insured dies the beneficiaries will be paid a settlement amount based on the amount of coverage that the insured purchased. Again, this is standard with all life insurance policies. However, term life insurance is different in one respect. Specifically, term life insurance only provides coverage for a certain designated period of time. This timeframe is, of course, the term mentioned in the title of the coverage.


In short, the coverage is purchased for a specified term. When the term expires, the insured has the option of purchasing a new policy. In some instances, it may be the exact same policy at the same price. In other instances, it could be a new policy at an increased price or different terms. And, of course, the insured could also downgrade the policy for a lower premium. Really, this is the major benefit of purchasing a term life insurance policy. A person can save a lot of money on the purchase of a policy since the policies are being purchased in fixed terms.


This makes term life insurance perfect for those that may be on a proverbial budget. Anyone looking to make sure their family is properly covered in the advent of an emergency can take out a short term policy at a reasonable cost. That alone is a huge endorsement for term life insurance.

Save Money by Investing in Life Insurance – Read Before March 2009

Let's take a quick look at the major events that occurred last year and compelled us to re-consider our strategies for our daily life styles. A couple of incidents namely the 26/11 terror attacks and the huge slump in the financial markets has made the citizens of India to redo their overall planning. The worst part of it was that these incidents occurred in the latter part of the financial year (Nov, Dec 2008). Promotions and hikes stopped, major conglomerates like Lehman brothers and Meryll Lynch and lately our very own Satyam Computers all bit the dust and millions went unemployed. Then we have the terror attacks in Mumbai that rocked the country and left all dazed. As of now a common man isn't sure that if he/she could return home safely after work. All these factors have definitely boosted the sales of the Life Insurance Companies, as their prime objective is to render financial security. Investments as of now are being made on all fronts, whether it is finance or life, both aspects needs security.

Let us consider an insurance investment that primarily emphasizes on the life of your family members in your absence (read death). When you opt to go in for such an investment for the first time the Life Insurance Company will floor you with terms and products could catch you off-guard. Some important terms that you would come up against is Life Insurance Quotes, Life Insurance Policies, Life Insurance Term, Life Insurance Plan and Life Insurance Premium. Life Insurance Policy is the terms & condition that you accept when you opt to invest in Life Insurance. These includes the Life Insurance Plan (policy planning), Life Insurance Premium (an annual, half yearly, quarterly, or monthly amount that is to be paid to enforce the policy), Life Insurance Term (the period through out which the premium is to be paid) and Life Insurance Quotes (the rates at which the policy is sold). Generally a common investor could opt for a policy where he will have to chalk out a premium, which again would depend on his annual income, to be paid for a period of 20 years. This policy could be live for another 20 years after the premium has been stopped, and then the total sum assured is returned to the beneficiary, nominee or insured. In case of untimely death, the amount is immediately given to the family of the insured. This amount depends of the Life Insurance Cover derived out of the policy and premium paid.

Incase of financial fronts, investing in insurance is extremely profitable as it helps you to save tax-payments. Under section 80C all citizens of India are liable to income tax deductions if the yearly income is above 1.5 lacs/annum INR. These deductions are again categorized in to various slabs where different groups will be paying a certain percentage depending on their income. If you have an income of 3lacs/annum, it means that you will be paying a tax of [10% (3,00,000-1,50,000)] = 15,000/. Now if you decide to invest 50,000/ into an insurance policy or some ULIP's (Unit Link Insurance Plan), then your tax would be [10% (3, 00,000-50,000-1, 50,000)] = 10,000/. Moreover the interest or dividend that you get out of the insurance is completely tax-free. It is also highly advisable that people into the higher tax-paying brackets go in for higher investments. People who are on the verge of retiring should consider investing in pension plans. These plans are also tax-free, but investors should take into account a couple of important factors prior to making the investment 1) Age of the investor shouldn't be higher then 65 & 2) Minimum time that the policy and premium is to be maintained is 10 years. As the fiscal year is coming to an end, most of the tax-payers have already made investments. But for those who are yet to, considering the above points opting for Life Insurance Polices of plans from the following Life Insurance Companies could prove fruitful as it would offer modules that could just suit your needs.

1) LIC (Life Insurance Corporation),

2) SBI Life Insurance,

3) Bharti-Axa Life Insurance,

4) ICICI Life Insurance,

5) Reliance General Insurance.

Kindly note that the investments for pension plans are tax-free, but the returns aren't. One third of your return is tax-free, where as the other two thirds are subjected to tax-deduction.

About the Author:

Insurance and premium adviser for India's leading insurance company. To read more about Life Insurance Policies in detail click here.

Author: Nail Ramp
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