Term Insurance

I came across this comment on a forum: “I’ve not seen a single insurance agent recommending term insurance.” I realised that’s true. So far the term insurance policies that I purchased are based on personal requests to a friend whom I know in the industry. Otherwise, all other agents I have dealt with NEVER EVER offered term insurance to me although it would have been the best and most cost-effective option considering my financial profile.

I have always been a strong advocate of term insurance to my friends because it is a cheap and effective way to get coverage for death and critical illnesses. However, they will need to understand more of what term insurance is about because it does have some risk involved. Chiefly, there is no value stored in the policy, so any failure to pay can cause the policy to lapse; unlike life insurance policies where premiums can be drawn from the underlying value after some time. Another thing to note is that discipline will also be required to make good use of the cost savings between life insurance and term insurance. Either utilise it for essential expenditure, or invest it wisely.

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