In case you are curious about what is a life insurance term policy and what are it’s uses and what it may offer, read my article below. important insurance terms
What Can be Term Life Insurance Agreement?
An agreement signed between you and your life insurance provider saying that a certain amount of money will be paid to your beneficiaries after your death defines the term life insurance policy. The will be active simply for a specified time frame as long as you satisfy your financial duties.
The Incontestability Of Your Term Policy
The incontestability term is included in your term life insurance deal. It says that in case of false information, the life insurance company can withdraw your coverage in a certain quantity of years (usually not anymore than 2).
Also, if you die before this era is over the claim can be fought for by the company plus they can limit the repayment to existing premiums plus interest. Once the period is finished the policy is incontestable. The insurance company cannot withdraw it and they must pay the full amount after fatality.
The Suicide Clause
If you choose to kill yourself within a specified period written in the contract (usually 2 years), the company can refuse to pay the claim but if you do it afterwards they have to pay the full amount.
The Misstatement of Age
If you happen to misstate your age, after death the company will pay only the amount for your correct age.
Ownership Of The Policy
Generally a policy’s applicant is the insured and the particular owner and he has all the decision rights. In some cases the applicant and the insured are not the same person.
To get example a mom or dad can guarantee a minor child, a husband can purchase an insurance policy for his wife and a corporation can buy life insurance due to its key employees.