Term life insurance is usually the least complicated and least expensive type of life insurance. It offers insurance protection for a specified period, such as 10, 20 or 30 years.1 If you die within the period and the policy is in force, a death case will be sent to your recipient. If you are still living at the end of the term, the protection is not more, unless your term life insurance is renewed. There is no "accumulation" element, or with the concept of present value of life insurance.
Who is it?
* People with a temporary need for life insurance.
* Those who need a large amount of insurance protection, but have limited resources.
* People with special needs (such as companies, the owners want the lives of workers, a key has a set number of years until retirement).
Benefits of Term Life Insurance:
* It offers insurance cover for a low-cost (at least initially).
* If your needs change, most term life insurance, you can convert to a permanent life insurance without a medical examination or other information about your health.
* Term life insurance is a good way to supplement other coverage, if you have added financial responsibility for a certain period of time (eg mortgages, college expenses).
* Death benefits received are generally from income tax.
Things you should know:
* The premiums are generally increases with age and they may be unaffordable later in life. There is no cash element with a maturity value of life insurance, so you miss the tax-deferred growth of the cash value of the permanent life insurance, such as Whole Life Insurance.
* When the term expired, unless you renew your policy, the insurance cover expires and the policy has no value.
Who is it?
* People with a temporary need for life insurance.
* Those who need a large amount of insurance protection, but have limited resources.
* People with special needs (such as companies, the owners want the lives of workers, a key has a set number of years until retirement).
Benefits of Term Life Insurance:
* It offers insurance cover for a low-cost (at least initially).
* If your needs change, most term life insurance, you can convert to a permanent life insurance without a medical examination or other information about your health.
* Term life insurance is a good way to supplement other coverage, if you have added financial responsibility for a certain period of time (eg mortgages, college expenses).
* Death benefits received are generally from income tax.
Things you should know:
* The premiums are generally increases with age and they may be unaffordable later in life. There is no cash element with a maturity value of life insurance, so you miss the tax-deferred growth of the cash value of the permanent life insurance, such as Whole Life Insurance.
* When the term expired, unless you renew your policy, the insurance cover expires and the policy has no value.
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