Planning to get life insurance is always a smart move. You can never tell what is going to happen in the future, and it is best if you are prepared. Situations may or may not happen, but it is best to try to think long term. With life insurance, you can usually pick out a term for the duration of the life insurance; certain plans may cover you up to a certain age.
Keep in mind that life insurance companies are playing a risk-based game where they evaluate whether the insurance term will run out before your death, or not. In fact, the cost of premiums is calculated based on your life expectancy. Since a policy is charged on the basis of your life expectancy, it is therefore determined via the risk category that you fall under – the higher the mortality rate, the more expensive your life insurance policy will be. Of course, there are a number of elements that affect your life expectancy, and the cost of any given policy can vary depending on your age, gender, family medical history, overall health, and other lifestyle choices. This is measured by comparing your statistics to other people who have a similar lifestyle profile.
If you are categorised as being high-risk, it means that you are statistically more likely to die at a younger age than other groups. Therefore, this results in a more expensive insurance policy since you’ll make fewer payments when compared to other people who are low-risk and will be paying the insurance company for longer.
On the other hand, if you are living the healthiest life possible and are avoiding putting yourself in harm’s way, you not only get to enjoy a reduced life insurance premium, but also increase the likelihood of a long life.
The question is: what happens when your term ends, and you didn’t die?
The quick answer is that your coverage will end, and if something happens to you after that point, the insurer will not issue the payout. That being said, you can opt to get a different plan or renew your plan with the same insurer. It all depends on you, what you want to do in the future, and how you want your plans to change.
If you wish to get a quote for your life insurance, click here.
Term policy
At the end of your term, your coverage will end and the payments will be completed. This means that you obviously are not required to pay the insurance company anything else, which will result in the coverage being terminated. Therefore, if something were to happen to you after your term has ended, the insurance company will not issue the payout upon your death.
Term life insurance is not an investment or savings plan. If you paid money to the insurance company, and you outlived your plan, the money will be used for other families who were not as lucky. Think about life insurance as putting your money in a bucket for a what-if situation. You pay so that if something happens, your family will be set.
You pay life insurance particularly when your family and loved ones rely on you as the sole breadwinner. If you are the only one with an income, it would be smart to get life insurance during your earning years, as this is when your family relies on you the most. You may outlive your term, but if you do not, you can rest easy knowing that your loved ones are financially cared for even after you pass away.
Renew your policy
If you have outlived your life insurance policy, think about renewing it. Remember why you got the insurance in the first place. Whether you got it for your family, business, or another reason, the need for life insurance might have increased. Renewing your insurance will help you remain in a calm state of mind knowing that if something were to happen to you, the beneficiaries of that insurance would remain safe and secure.
If you wish to renew your insurance, make sure to speak to an advisor first. Knowing all your options will help you make a better-informed decision that will ultimately benefit you and your family in the future.
Ivalife’s term policy
Ivalife’s term policy offers a fixed period of insurance. To financially protect your loved ones, Ivalife’s level term may also be used to cover debts, mortgages, and does not decrease over time. This is to make sure you and your loved ones are financially taken care of and protected.
It is always smart to get your finances in order before insuring. On the Ivalife website we provide a sum insured calculator for you to visualise better what you will be paying. In order to do so, you’ll need to fill out some questions: for example, why are you getting life insurance? How much debt do you have? How much are you paying for your house? – and other such questions. This will help you understand more clearly how much you will be paying and for how long. This is most important when applying for insurance for the first time.
Conclusion
If you don’t die in the fixed period of your life insurance, you can either opt-out of getting any other life insurance, or you can ask if you can get it renewed/extended. If you are unsure about what to do, be sure to contact us and we will discuss your options.
The money you paid will not return to you, but it will go to people and families who were not as lucky as you were when outliving your coverage. Always keep in mind that an insurance plan is not the same as an investment or savings plan. You are paying for what-if situations. Ideally, nothing will happen to you and there will be no problem, but this rarely happens. Therefore, ensuring that you have a life insurance plan will help you in terms of planning ahead, and if need be, help other people.
