Term Life Insurance

Couple-Financial-PlanningTerm life insurance quotes are designed to provide protection for a limited period of time, which is called the “term” of the policy. However, if the insured does not die while the term of the policy is in force, the face value nor premium are refunded.

Term insurance, therefore, provides death protection only; it offers no living benefits such as the guaranteed cash value of whole life insurance policies. Term insurance is used to provide economical coverage at certain times in the life of the owner when having additional coverage would be a big advantage.

Some term policies are renewable, which means that those policies can be renewed at the end of the term for a similar period without the insured having to show evidence of insurability. The evidence for insurability usually consists of a medical examination or doctor’s statement regarding the insured’s satisfactory health status (in other words, no physical examination is required in this case).

The premium of the renewal is based on the insured’s age at the time of the renewal. Term policies may also be convertible; the convertibility factor allows the policy owner to convert the temporary protection of a term policy to permanent protection (usually in the form of whole life insurance) without evidence of insurability.

Because term life insurance is a temporary type of protection, it is often used to cover temporary needs, such as debts, for example. Other benefits are included, like its initial low cost, making it suitable for people with a large need for insurance but with limited financial resources. Term life  insurance can also be flexible; it can be used to provide additional protection for the insured. Needs and responsibilities change throughout a person’s life; term polices can be used to cover those needs when they are available.

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