What Is Term Life Insurance

Term life insurance is a life insurance coverage product that pays out a cash lump sum upon death of the insurance coverage policyholder or at the point that the insurance policyholder is diagnosed as terminally unwell. But, despite it being a low cost term life item – insurance cover can be acquired from as small as 5-10 per month – surprisingly couple of of us have term life insurance in place.

For individuals with a home loan and family to support, not having a term life insurance coverage coverage exposes them to a big monetary risk. This risk becomes apparent when you consider how the home loan and household bills would be paid if the primary income producer were to die or to turn out to be terminally ill. The finish outcome might be that loved ones who are left behind find their home is repossessed simply because they cannot maintain up the home loan repayments.

Some people prepare for such an eventuality by taking out a home loan life insurance policy. This is all well and good for covering off the remainder of the home loan loan, but where will the money come from to pay the gas & electricity bill and the council tax bill every month, let alone the money needed to cover the policyholder’s funeral expenses? It is at this point that a term life insurance coverage policy becomes very useful indeed.

If you don’t have a term life insurance coverage coverage in place, here are some sobering reasons why you should think about taking out a term life coverage now…

* CANCER – One in three people will develop cancer at some point in their lives. Research into cancer is of course ongoing, and one day some cancers may be curable. In the meantime a term life coverage offers earnings protection for loved ones left behind in the event of terminal cancer diagnosis and death from cancer.

* HEART DISEASE – Heart and circulatory disease accounts for more than 35% of all deaths in the UK each year. The number of individuals dying from heart and circulatory disease is on a falling trend, but the number of individuals becoming morbidly obese is increasing, and so may reverse this trend in the near future. Term life policies can be configured to pay out if cause of death is heart-related.

* MRSA (SUPERBUG) – The death rate from the MRSA superbug has doubled in the last 4 years. MRSA is really a bacterial infection that is resistant to antibiotics. It commonly causes death in people with weak immune systems, and so easily spreads amongst the sick & old in hospital wards. Many life insurance policies pay out if the cause of death is MRSA related.

* AVIAN FLU (BIRD FLU) – Recent comments by the Society of General Microbiology in the UK sparked controversy when they estimated that 2 million individuals in the UK could die from a highly infectious strain of mutated Avian Flu. If you are worried about Avian Flu check with the life insurance coverage agent to see if their term life policy covers such an eventuality.

Learn much more about mortgages and life insurance coverage by reading informative insurance articles today!