The policy owner must pay premiums upfront or regularly to keep the policy in force.
When the insured pass, their indicated beneficiaries receive insurance coverage or death benefit.
Term insurance is designed to cover a specific period of time. You choose the term when you buy the policy, usually it is 10, 20 or 30 years.
Before applying to purchase a life insurance policy, analyze your financial situation and determine how much money will be needed to maintain the standard of living of your beneficiaries or to meet the needs for which you are purchasing the policy, also consider how many years you will need coverage for.
For example, if you are the primary guardian and have two and four-year-old children, you will need enough insurance to cover your custodial responsibilities until the children are old enough to support themselves. You can research the cost of hiring a nanny and housekeeper or using commercial childcare and cleaning services, and add money for education. Keep in mind any outstanding mortgages and retirement needs for your spouse—especially if your spouse earns significantly less or is a stay-at-home parent. Add up those costs over the next 16 years or more, add a little for inflation, and that is the amount of death benefit you might want to buy—if you can afford it.
What affects your premiums?
Your health and age are the biggest determinants of cost, therefore purchasing life insurance as early as possible is often the best option.
Factors influencing insurance premiums and costs are as follows:
Age (insurance is cheaper for young people)
Gender (women pay less)
Smoking (increases premiums)
Health (poor health increases premiums)
Lifestyle (risky activities increase premiums)
Family medical history (chronic diseases in relatives increase premiums)
Driving history (good drivers save on insurance policies).
Source: https://www.investopedia.com/terms/l/lifeinsurance.asp
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