If you ask me what kind of insurance a married person should buy, I would definitely recommend term life insurance. Term life insurance is very special. It is not a protection for yourself, but a protection for your family. It is said that people who take the initiative to buy term life insurance for themselves must be people who are responsible for their family. This statement is really true.
So, what is term life insurance? Is there any difference between term life insurance and accident insurance? Let’s take a look!
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1. What is term life insurance?
Term life insurance is easy to understand. If the insured dies (or becomes totally disabled) within the period specified in the contract, the insurance company will pay a sum of money to the policy beneficiary according to the insured amount stipulated in the contract.
The reason it is called “term” life insurance is because it can only provide coverage for a certain number of years. If the insured does not die or become totally disabled within the specified period, the insurance company will not refund the premium. This has the advantage of lowering the price of the product, allowing everyone to buy the highest coverage with the least money during the years when family responsibilities are the heaviest.
The beneficiaries of term life insurance can be parents, spouses or children. It can be used to repay the mortgage of the house, or it can be used for daily expenses of the whole family, children’s tuition, etc. It is very necessary for the breadwinner of the family to purchase a term life insurance for himself.
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2. Is there any difference between term life insurance and accident insurance?
Seeing this, some people may think that accidental insurance also covers death and total disability, and the price is cheap, so why spend so much money on life insurance? Wouldn’t it be better to buy accidental insurance? This idea is actually too one-sided!
Accident insurance can only compensate for death and disability caused by accidents, and the scope of claims is limited. For example, death due to serious illness, legal declaration of death (disappearance), suicide two years after the insurance is taken out, etc. are not covered by accident insurance.
Term life insurance can not only compensate for accidental death, but also for death due to illness and other situations. It covers a wider range of causes of “death and total disability” and can better deal with emergencies.
Final Thoughts
Finally, I would like to remind everyone that not everyone needs to buy term life insurance. For example, children and the elderly who are not the family’s financial source do not really need to purchase term life insurance. For specific circumstances, you can consult a consultant at Kaixinbao Insurance Network to help you with a detailed analysis.
