Life insurance is usually a contract between the insured person who is also the policy owner and the insurance company. In the event of the death of the insured person, the beneficiary mentioned in the policy will receive the entire insurance amount as a ‘death benefit’. There are 2 broad categories of life insurance – Permanent Life Insurance and Term Life Insurance.  Here we will examine what instant term life insurance is and who needs this type of policy.

Instant term life insurance provides coverage for a fixed period.  The insured person pays the premium amount during the duration of the policy.  If he or she dies before the policy expires, then the beneficiary mentioned will receive the entire insured amount as a lump sum that is not taxed.  The amount is only a death benefit and does not include a savings component.  The death benefit received and the premium amount mentioned in the policy is one and the same.  If the insured person lives beyond the policy term, he cannot claim any of the policy amounts.  There is no exit option or he cannot terminate the policy early incase he is short of cash.  If he dies even one day after the policy expires, his beneficiaries are not entitled to anything.

Now, who should possess an instant life insurance? Young and healthy people with proper income can go for this insurance the main reason to choose this type of insurance is, the life insurance rates are cheap and affordable. It is a secured life insurance and also gives assurance that the basic family needs like school and college fees or home mortgage can be paid back without any tension. Umbrella protection is also available in case of unexpected death of the insured .The other kinds of life insurance are:

- Level term
- Renewable term
- Much Increasing / Decreasing term
- Convertible term
             -      Group term.

Premium amount will be fixed for the entire period in case of level term. Age limit is applicable in level term it should be between 1 and 30 years. Hence if you take a policy for 2 years old the premium amount never change fixed premium until the policy lapse, you can take a new policy when it gets lapsed. Commonly all will prefer for the 20 year policy and this is specially meant for those who are below 80 years. If the duration of the policy is long it is called as mortgage life policies, all outstanding amounts can be paid off during the death of the insurer.

Renewable instant term life insurance policy means the policy can be renewed after the end of the current term without the holder having to undergo new set of medical tests. It is very useful for older people who may have contracted an illness, want a policy and do not want to undergo medical tests.  In increasing and decreasing policies, the death benefit can increase or decrease over time with the premiums remaining the same.

In convertible policies; it allows the insurer to convert the term life policy to a permanent life insurance policy if the need arises. It is useful for people whose income increases and who want more coverage. Group term insurance is provided by an employer to all its employees. The premium is low. The coverage is general but not specific to one person. Term life insurance is a low cost and useful to those with limited income.

There are many reasons why people opt for instant term life insurance policies and a lot will depend on the beneficiaries.  A husband will want to ensure his wife is not left with the burden of a home mortgage in case of his untimely death.  A father will want his children to be able to continue their education with adequate income.  An employer will want to provide peace of mind to his employees and protect their lives since his business depends on their well being.  A son may want to get insurance for his parents to give them security in their old age.

It are important to take care of your family’s emotional and financial situation under manageable proportions. It is advisable to obtain insurance coverage at an early stage as no one can predict what will happen in the future. Get instant term life insurance quotes from various insurance companies and take the best deal. The terms and conditions should be in line with the premiums that are to be paid. Select a policy that gives the best terms with fewer burdens to you in terms of premium payments.