Term Life Insurance Company
Term Life Insurance which is also called Time Assurance refers to life coverage at a particular and fixed rate of payments for a limited time period as assured by the Term Life Insurance Company. After expiry of the period the coverage against previous premium rates is not guaranteed. Then the client has either to forgo the life coverage or continue further coverage at against new payments and terms & conditions. If the life insured passes away, the death benefits will be given to the beneficiary. Term Life Insurance is the cheapest way of purchasing a substantial death benefit over a specific period of time.
Advent of Term Life Insurance Company:
Term Life Insurance is the oldest form of life coverage. Later different life insurances came, namely universal life, whole life etc., that ensure life coverage for the whole life at a fixed rate of premium. Here is a list of some Term Life Insurance Companies –
- AIG Life Insurance Company: America General and AGLA have merged to form AIG, one of the world’s leading insurance companies. The new formation of AIG was made after careful market test and retiring some of the legacy brands including American General Life Companies and AGLA. There is no change in the insurance companies those who are issuing or marketing AIG’s product which were previously marketed by America General and AGLA.
- The United States Life Insurance Company: It is based in the city of New York. US Life provides life insurances policies in all the states of USA at fixed annuity as well as variable annuity contracts. It is supporting American families as well as business houses for over 150 years through committed service. Their products are marketed by some other insurance companies also, like American General Life Companies and Sun America.
- Sun America: This Company specifically markets investments to get retirement income along with Term Life Insurance that are issued by US life, New York. The New York based US life provide some seasonal and diversified strategies.
- Western National: It also sells New York based US life products that feature fixed and variable annuities.
Features and Benefits of Term Life Insurance:
- It is usually not used for organizations’ employee planning or for charitable purpose. It is purely availed by individual as income replacement.
- It functions like other insurance in the way that it meets the particular claim amounts against the life insured within the contract period and does not provide return if no claim is made. E.g. auto insurance will give the claims against the insured vehicle in case of accident or destruction if premiums are up to date and the contract period is not over. If the policy holder sells the vehicle and discontinues the premium dollar, the Term Life Insurance Company will not refund the premium paid so far.
- It meets the need of financial requirements of the life insured and his or her beneficiary. Such responsibilities include customer debt, dependent care, education cost of dependents, mortgages and cost of funeral.
Term Life Insurance is preferred over other insurance plan because they are less costly.