Term Life Insurance
The responsibility for meeting the financial obligations that may have been assumed on time is an onerous burden. By opting for the term life insurance you will take care of your close relatives and spare them that burden. If the insured person dies, close relatives will be able to meet his or her financial obligations.
Term life insurance is the only such non-endowment life insurance that only provides cover against the death risk. The sum assured will be paid if an insured person dies within the effective period of the policy.
Insurance options:
- Term life insurance. Premiums under this type of insurance will be paid during the entire effective period of a policy at regular intervals that the policyholder decides on (e.g. monthly, quarterly, semi-annually or annually).
- Single premium term life insurance. It is an opportunity to pay just one premium and acquire coverage for the whole effective period.
Sum assured and insurance period
Sums assured and premiums are stated in Euros. Thus the clients' interests are protected against possible devaluation of Litas.
The sum assured and insurance period will be selected by the policyholder himself/herself. In most cases the sum assured will be as high as the amount of a loan granted or the remaining part of a loan yet to be repaid by a person to be insured. The minimum sum assured must be at least 1,500 Euros.
The minimal term life insurance period should be at least 1 year. The maximum policy term will be limited by the policyholder's age.
Premium amounts will be based upon the insured person's gender, age, sum assured and length of the insurance period. Premiums will be paid in Litas. A policyholder will pay a single premium or regular premiums.
Eligible insured persons:
Persons from 14 to 64 years of age will be eligible for this type of insurance. Coverage may be provided for individual persons or for groups of persons. At the end of the insurance period the insured person should not be older than 75 years.
Advantages of term life insurance
Flexibility:
- You may transfer or pledge your rights under a policy
- You may select and change the beneficiary
- You may change periodicity of premium payments
- You may change the sum assured
- You may include additional personal accident insurance and additional critical illness insurance in your policy
Rationality:
- Possible financial obligations are covered (e.g., if a loan is taken out)
- Your interests are protected against possible devaluation of Litas, because sums assured are fixed in euros
