Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Term Insurance?

0
10 Posted

What is Term Insurance?

0

Term insurance provides protection for a defined period of timefrom one to 10, 20, or even 30 yearsand pays benefits only if you die during that period. Term insurance is often used to cover financial obligations that will disappear over time, such as tuition or mortgage payments. Premiums for term insurance either can be fixed for the length of the term or can increase at a point specified in the policy. They also can be less expensive than for a cash value policy. Term policies can include a return of premium benefit that will refund all or some of the premiums paid at the end of a term if no death benefit was paid. Term policies with this feature are more expensive than those without. Some term policies can be renewed at the end of a term. However, premium rates will usually increase upon renewal. Many policies require evidence of insurability to qualify for renewal at the lowest rates. At the end of a term, you also may be able to convert the policy to a cash value policy. Term pol

0

Term insurance is usually the least expensive type of life insurance available. Term insurance is purchased for a “term of time.” For example, one year, five years, 10 years, 20 years, 30 years. Term insurance is generally purchased to protect a family, a business, or any loved one who may depend on the income from the family breadwinner or principal business associate.

0
Peter Paul

Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified "term" of years. If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid.

 

0

Term life insurance is the least expensive and the least risky. You pay a certain amount of premium against a term period of 5, 10, 15, 20, 25 or 30 years. Most people don’t need life insurance for their entire life anyways so term life insurance makes sense. It covers the period in your life when you have the most liabilities and if you die during that time, it would make sure your liabilities are covered and your family has enough to fall back on. Look for AccuQuote term insurance – you’ll find a wide range of carriers and you can easily find  the best policy at an affordable price.

0

A. A Term insurance policy is a Life Insurance policy that furnishes life insurance protection for a limited number of years. The face value of the policy is payable only if the death occurs during the coverage period. There is no cash value to a Term insurance policy. There are various optional riders that can be added. Contracts vary between insurers. Premiums are lower since there is no investment value to the policy. Customarily, Term insurance policies are issued for a stated number of years (e.g. 5,10,20) or to a stated age. Premiums can be level for a certain period or increase at specified attained ages. Renewal and conversion provisions vary by policies and should be reviewed when purchasing. One form of Term Insurance, known as “Reversionary Term”, requires medical requalification at a specified date to retain favorable rates. Some Term Life policies have decreasing benefits (e.g. Mortgage Term Life) at specified dates or ages.

Related Questions

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.