TERM – SFIC

Term Insurance

Term Insurance

Secure Tomorrow, Today:
Trust SFIC with Your Term Insurance

Pointers for Starting Term Insurance

Assess Your Needs: Determine how much coverage you need based on your financial obligations, debts, and family responsibilities.
Understand Policy Terms: Learn about the different term lengths available, from 10 to 30 years, and what suits your long-term financial planning.
Compare Premiums: Shop around to compare premiums from various insurers. Remember, cheaper isn't always better; focus on value.
Check Insurer Reliability: Choose an insurer with a good reputation for customer service and financial stability.
Consider Riders: Evaluate additional riders like critical illness or accidental death to enhance your policy.

What is Term Insurance ?

Term insurance is a type of life insurance that provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After the period expires, coverage at the previous rate of premiums is no longer guaranteed, and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions.

Benefits of Term Insurance

Term Insurance offer several benefits:

Financial Security for Dependents

Ensures that your dependents will receive financial support in your absence.

Debt Protection

Helps cover outstanding debts and financial obligations, easing the burden on your family.

Income Replacement

Acts as income replacement for years of lost salary in the event of your untimely death.

Estate Planning

Can be used as a tool for estate planning, providing funds to cover estate taxes or other related expenses upon death.

FAQ on Term Insurance

Find expert answers and clarity on all your Term Insurance – related questions in our dedicated FAQ section, tailored specifically for our Term Insurance offerings.

What happens if I outlive my term insurance policy?

If you outlive your policy, the coverage ends unless you renew it or convert it to a permanent policy.

Can I renew my term insurance policy after it expires?

Many term policies offer a renewable option, but premiums may increase upon renewal.

Is a medical exam always required for term insurance?

Not always. Some policies offer term insurance without a medical exam, though these can be more expensive.

What is the best age to buy term insurance?

The best age is when you have significant financial obligations or dependents.

Can I convert my term insurance to a whole life policy?

Yes, if your policy includes a conversion rider, you can convert it without a medical exam.

How do I choose the term length?

Base the term length on your longest financial obligation, such as the time until your youngest child becomes financially independent or your mortgage is paid off.

What factors affect the cost of term insurance premiums?

Factors include your age, health, lifestyle, the term length, and the amount of coverage.

Can term insurance premiums increase?

For level term insurance, premiums do not increase during the term. For annual renewable term insurance, premiums can increase each year.

Does term insurance cover accidental death?

Yes, term insurance covers death by accident, but some policies offer additional riders for enhanced coverage.

Are there any exclusions I should be aware of?

Common exclusions include deaths from suicide within the first two years and deaths caused by illegal activities.

Types of Term Insurance :

Level Term Insurance: The death benefit remains the same throughout the policy term.
Decreasing Term Insurance: The death benefit decreases over the policy term, typically suited for those covering a debt that reduces over time, like a mortgage.
Increasing Term Insurance: The death benefit increases over the policy term, often used to counteract inflation.
Convertible Term Insurance: Allows policyholders to convert their term policy into a permanent insurance policy without a medical exam.

Why Do You Need Term Insurance ?

Affordability: Term insurance offers a substantial death benefit for a relatively low premium, making it more affordable than permanent life insurance.
Simplicity: Policies are straightforward, without the investment components that permanent policies often have.
Flexibility: You can choose the term that best matches the time frame of your greatest financial responsibilities, like raising children or paying a mortgage.
Temporary Coverage: Ideal for people who need coverage to protect against financial loss during critical periods.

How to Choose the Best Term Insurance ?

Coverage Amount: Ensure the death benefit is adequate to meet your family’s needs.
Policy Term: Choose a term that covers you until you feel your financial obligations will decrease significantly.
Premium Payments: Consider whether you prefer level premiums (the same throughout the term) or if variable rates work better for your financial planning.
Company Reputation: Research the insurer's track record for paying claims and their financial health.
Policy Features: Look for policies with additional benefits or riders that could be beneficial, like a return of premium option or accelerated death benefits.

Myths About Term Insurance

Myth :Only for Breadwinners

Fact: While breadwinners should definitely have term life insurance, non-working spouses also provide significant value that should be protected.

Myth :Too Expensive

Fact : Term insurance is actually the most affordable type of life insurance available.

Myth : Unnecessary for Young Singles

Fact : Young people often have debts and dependents who could benefit from the security term insurance provides.

Myth : I’m Too Young to Need It

Fact : The younger you are when you buy term insurance, the cheaper the premiums will be.

Tax Implications on Term Insurance

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Term Insurance

Secure Tomorrow, Today:
Trust SFIC with Your Term Insurance

Pointers for Starting Term Insurance

What is Term Insurance ?