• zTermLifeInsurance Blog

  • Thursday, July 29, 2010

There are more ways than ever to invest your money and more opportunities to do so. From the stock market to IRAs to 401ks, from the traditional method of hiring a broker to the new trend of picking stocks yourself through an online brokerage house, you have so many choices that it could be overwhelming. But if you are looking for a safe, secure option to make sure your family will be financially sound if something terrible happens to you, then term life insurance is the solution you're looking for.

While the stock market and mutual funds could lead to some extremely high rates of return, they could also be financially devastating in that you could lose your entire investment if a company takes a tumble. While it's always good to have a diverse portfolio with many components, you do not want your family's future to rest entirely on a risky proposition.

Term life insurance offers a more secure option. Simply designate the amount you want disbursed to your family if you pass away during the policy, pay premiums for the service, and that is it! If something happens to you, your family will receive the total coverage amount so they can pay off outstanding bills.

The total payout of your policy is set at the time you make the plan purchase. So you don't need to worry about it fluctuating down like the stock market or other investment options. Your family will get the money it needs to survive without your income, allowing them to keep current on bills or pay items off altogether.
John Fleener (say) is an executive with an international marketing company. His company has offered him a dream assignment: to set up and head operations in several offices in Europe. There’s just one glitch, though: He has no life insurance, and is newly married. He approaches several companies with his request for international insurance, with one of two responses.

Companies either reject his application because he will soon be an expatriate, or the rates are too high. International term life insurance from the IC+ Term Life Insurance might be just the plan for John. It offers him coverage anywhere outside the United States. If John were to travel to other European countries as part of his job, he would still be covered for life.

To qualify, John has to either live outside the United States at the time of application, or must leave the United States before the plan becomes effective. The IC+ Term Life Insurance plan also offers some travel assistance services that might come in handy.

The insurance term options are one to ten years, and the plan also offers terminal illness and double indemnity coverage. The plan is administered by HCC Medical Insurance Services and is ideal for those living and working outside the United States, and their spouses.
When the years get older, the older get insurance! That’s probably not a good maxim to live by, since you’d want to purchase insurance earlier, rather than later in life. This is especially true of life insurance, when your premiums skyrocket as you grow older. Those buying term life insurance may have a bit of a breather in this regard, simply because of its relatively lower cost.

Typically, a plan holder would want to complete all financial obligations by the time of retirement, so that all he/she needs to spend on are daily expenses and a few luxuries that were always on the to-do list, but never got done (a trip to Egypt, anyone?).

Also, term life insurance is typically purchased until all financial obligations are done with. This includes children who are independent. However, with the increasing age of first-time mothers (and fathers, of course), parents find that by the time they retire, their children may not actually be able to fend for themselves.

In this situation, it makes sense to purchase term life insurance for until the son/daughter is likely to become financially independent. It is also important to remember to factor in that premium when planning for retirement. “How long should my term life insurance last?” is obviously a question that depends on your particular situation.


Whenever the debate about whole life insurance versus term life insurance crops up, it seems natural that people who have the traditional view of savings recommend whole life insurance, while those who like to control their investments recommend term life insurance.

Proponents of whole life insurance also often bring up another valid point: whole life insurance is an asset, but term life insurance cannot be counted as an asset. Whole life insurance can indeed be used as collateral when applying for loans and for other financial transactions. Term life insurance cannot be used for any other purpose other than insuring your life.

And that is exactly what term life insurance is all about, though: a no-frills, simple and plain cover for your life. If any investment advisor suggests you purchase term life insurance as an investment, it is misleading. For a complete investment portfolio, term life insurance must be supplemented by adequate long-term investments in reputed financial instruments such as bonds and mutual funds, depending on your situation.

This is not to suggest that whole life insurance does not have any merit. It is still the most dependable investment plus life cover option available today. However, deciding whether to delink life cover from investment is a choice you will need to make.
If you find yourself in a foreign country for business purposes for an extended period of time, you will certainly want to invest in term life insurance. It offers your family valuable financial protection for recurring expenses as well as unique circumstances.

Term life insurance will provide your family with financial relief in the event a tragedy strikes you. With proper planning, they will be able to continue paying expenses like mortgages and car payments even without the help of your income.

But what you may not consider are the unique expenses that come along with international travel. For instance, if you were to pass away overseas, there would be an expense associated with repatriation of your remains.

Term life insurance can be used for this and other expenses as well. Talking with a term life insurance representative or researching online can give you a clearer view of what expenses beyond monthly bills you will want to make sure your family can afford.


While term life insurance is the preferred method of life insurance for many people today, expatriates face some unique challenges when looking for term cover. For one, it may be difficult for an expatriate to find a company that offers a reliable international term life insurance plan. Second, coverage may not be sufficient for your situation.

Remember that plans such as IC+ Term Life Insurance offer reliable insurance for up to $2 million. This amount should be sufficient, especially if you have other investments that will pass on to your dependents on your passing on.

The $2 million works for most folks simply because the rule of thumb for term life coverage is 20 times the annual income, and considering a $100,000 annual income automatically brings us to the magic figure of $2 million. Remember that you can also opt for lower sums in the IC+ Term Life Insurance plan.

For lower amounts, you might not even have to fill out a financial questionnaire or a medical questionnaire. However, these could be asked for by the underwriter in case they think it necessary to ascertain your financial and medical health.

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