Life Insurance

Stories and information to help you plan, prepare and protect what matters most.


Term Life Insurance

Have you ever asked yourself, what is term life insurance or how does term life insurance work? To keep it simple, term life insurance for critical illness ensures that after a loved one’s death, or even during the time of the illness, the individual will receive the lump sum amount or the family will get the sum assured if death is the result. 

How does term life insurance work?

The policyholder will pay a monthly fee and once the policyholder passes away, the money goes to the person insured. There are different types of term insurances. For example, certain policies may protect the policyholder from a terminal illness, like cancer or organ failure. Over time, these illnesses can become costly and eventually drying up your finances. This plan will benefit by having money after a loved one passes away. It also gives you a security blanket to know that your loved ones will be taken care of. 

Upon diagnosis of the specified critical illness, the benefit acts as a “living life insurance” as the lump sum amount will be distributed to the policy holder. A primary beneficiary would only be necessary upon death. 

Term life insurance must come with a specified critical illness benefit because it will be an income replacement, premiums remain the same, double tax benefits and increase your chance of survival. 

Another benefit of term life insurance that has a critical illness is that it can cover both hospital and non-hospital expenses. It will help bring needed cash flow during the time of recovery. If you are a single income household, term life insurance with critical illness is imperative. 

What is term life insurance?

It is a safety net that ensures families are taken care of during accidents or illnesses and after a beloved family member has passed away. It is recommended to purchase a plan that is at least 10 times the amount of your life insurance coverage. This is because if you are the sole provider for your family, you want to make sure they have enough to cover food, shelter and other essentials. Coverage should be taken out on both parents, even if one is a stay at home parent. 

Term life insurance with critical illness should also be purchased by a certain age. The older you get the more likely you are at risk for more health issues. As a result, your premiums will be more expensive. 

Another thing to know is that you do not want to buy a term that is too short. Remember that you are looking in the far future and you should consider your kid’s age as well. Does the term cover them until they are out of your home? Make sure you are taking care of your family! 

Now that we have answered the questions, how does term life insurance work and what is term life insurance, it is time to get a plan in action! Contact Health Server Solutions today.