What is Term Insurance?
. Term insurance provides protection for a specified period of time: a term of 1, 5, 10, 15, or 20 years is available. The type of policy only pays a benefit if you die during the policy term. Term insurance does not build cash value. If you stop paying your premium, the insurance expires. This insurance generally is less expensive than other types of life insurance.
Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed when you reach the end of a specific period, which can be from one to 20 years. At the end of a renewal period, rates are usually adjusted to your current age and amount of insurance.
By: Kade Phillips, contributing writer at kanetix.com. Term insurance is short for term life insurance. Also, people sometime say “term life”. These are different ways of referring to a popular and simple type of life insurance and all mean the same thing. The purpose of life insurance is to insure the economic value of a human life; the earning power provided for a family or business. The reasons people buy life insurance are because they have children, a mortgage, other loans or debts, final expenses and/or business responsibilities that require cash in the event of their death. Term insurance is life insurance that is provided for a pre-determined period of time. When you buy term insurance, you can typically select from 5, 10, 15, 20, 25 and 30 year policies. Older individuals may sometimes not be offered the longest terms but, generally speaking, term insurance for 5 or 10 years is available to those among us who are somewhat advanced in years. Term insurance is the most easy to u
Term life insurance is insurance that lasts for a specific time, such as 5 years or 10 years. The policy pays a death benefit in the event the insured dies during the specified period. Since term insurance is for a limited period and accumulates no cash value, the rates tend to be low for a given amount of insurance.
