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.

In level term, the premium amounts will be the same for the entire period of the policy.  The duration can be anywhere between 1 and 30 years.  So, if you take a 2 year policy, the premiums will not change during this period after which a new policy can be taken.  The 20-year policy is the most popular and meant for those below 80 years.  The longer period policies are called mortgage life policies since they can be used to pay off all outstanding mortgage amounts upon the death of the insured person.

Renewable instant term life insurance in this type the policy is allowed to renew after the end of the current term where the insurer need not  take up the medical tests. This type of policy is exclusively for older people who may be affected by contracted illness, need a policy without medical tests. Premium of the policy will remain the same there may be increasing and decreasing policies, even the death benefit may vary by increasing or decreasing.

Convertible another type of insurance from a term insurance we can convert to permanent insurance if it really fits the need for you. This type of insurance will suit when there is increase in the income at some point since they can avail for a new insurance with more coverage. Another type is group term insurance this is generally used in companies where the employer will take insurance on the employee, the premium amount is low, and this is not only a specific list of employees. People with limited income can get term life insurance.

Instant term life insurance policies are taken for many reasons. A lot will depend on the beneficiaries. A husband does not want to burden his wife with home mortgage dues for his immature death. Also a father would like his children to continue the education with income. An employer like his servant to be happy and he want to protect them as his profits of the company depend on their well being. Similarly a son desires his patient should be secured 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.