Temporary Life Insurance: It is the simplest insurance and the easiest to understand. It is chosen by young families or young people between the ages of twenty and forty-nine.
Benefits of Temporary Life Insurance
Unlike other types of policies, term insurance does not generate savings or investments. For these reasons, this is why term insurance is usually a way to get more protection of your money in the most economical way. You can start with this type of insurance and, as you increase your income, you can change your policy to another type of Life Insurance.
Characteristics of Temporary Life Insurance
Provides financial protection for a specific and limited time. That is, the contract will be for one, ten, twenty years or the number of years, agreed with the insurance, the requirement is that a contract end date must be stipulated.
During all this time, you will pay a premium in order to obtain a certain amount of money, which the beneficiary of the insurance will receive in case of his death during the term of the insurance, but if the insured survives the term of the insurance, his beneficiaries will receive nothing. That is, the policy only gives benefits if the insured dies before the expiration date.
The compensation for death will be proportional to the value of the premium. That is, the larger the policy, the greater the amount received by its beneficiaries. As from insurer to insured there is great variety in the prices of premiums, it is convenient to make a comparison of the different offers.