Global Term Life Insurance is a type of life insurance policy which will provide a death benefit, or payout, in the event that you die within a specific period of time.
Also known as Term Life Assurance, a Global Term Life Insurance plan will allow you to select the duration of the policy’s coverage; this duration is the “term” of the plan. In the event that you die within the policy’s term your beneficiaries, as named under the Term Life Insurance plan at application, will be entitled to a lump-sum monetary settlement from the insurance company.
The fact that this type of Life Insurance plan will only provide coverage for a specific length of time means that it is often more cost effective than a Whole of Life Insurance policy, however the main drawback to a Global Term Life Insurance policy is that deaths occurring outside of the plan’s term are not eligible for settlement. While this is the biggest risk of a Term Life plan, these policies can be used for support in the event that you are in the process of planning your estate for your dependants, giving you the assurance that your loved ones will have the financial support they need even if the worst should happen.
When applying for a Global Term Life Insurance Plan you will be allowed to select the length of the policy. As previously stated this is known as the plan’s “Term” and coverage is only in force during this period.
Common options for the duration of a Term Life Insurance plan are 5, 10, 20, 30, or 35 years. It is important to note that longer terms may be possible for this type of coverage but these will usually come at the expense of an increased policy premium. In fact, choosing a Term Life Insurance policy with a longer term will always be more expensive than choosing a shorter period of coverage; as such you can expect to pay more for a plan with a term of 35 years than you would for the same policy with a term of 10 years.
The length of the term which is provided by the life insurance is at the choice of the policyholder, so it is important to carefully consider your needs and contemplate the exact length of time you foresee the coverage being required. Normally, the longer the term of the insurance, the greater the chance that the insurance company will have to provide a lump-sum settlement to your designated beneficiaries, consequently leading to a higher cost for the coverage being offered.
In order to obtain a Global Term Life Insurance policy you will normally need to complete a Medical Check-up to determine the state of your health, which will influence your risk of death during the term. The results of this check-up must be submitted to the insurance company along with the general application paperwork. CCW Global can arrange the physical check-up for you, and we will ensure that the insurance company covers the costs of the procedure.
The insurance company will assess the results of your Medical Screening, taking into account factors which may influence your risk of death, such as Tobacco or Drug use, along with the total sum insured to calculate a premium.
If you accept the premium offered by the insurance company you will be accepted to receive coverage under the Global Term Life Insurance policy.
It is important to understand that a failure to disclose any material facts requested by the insurance company during the application process may result in either a denial of coverage, or a cancellation of the entire policy should such facts come to light after your acceptance to the Global Term Life insurance plan. As such, it is important that you complete all application paperwork as accurately as possible.
CCW Global Insurance is a specialist international insurance broker with extensive experience in helping individuals around the world source the most comprehensive life insurance solutions on the global insurance market.
If you would like to receive a free quote for a Global Term Life Insurance policy from CCW simply complete the short form at the top of this page. Once you have submitted your quotation request an expert Global Insurance broker will then contact you to further discuss your options.
Should you have any questions, or require any clarification about how Global Term Life Insurance plans can cover you, please Contact CCW Today.Print or Share