Term insurance


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Term insurance

Provides a death benefit only, no build up of cash value.

term insurance

A type of life insurance in which the insurance company pays a specified sum if the insured dies during the coverage period. Term insurance includes no savings, cash values, borrowing power, or benefits at retirement. On the basis of cost, it is the very least expensive insurance available, although policy prices can vary significantly among firms. Compare cash-value life insurance.

Term insurance.

A term life insurance policy provides a guaranteed death benefit for a set period of time, such as five, ten, or 20 years, provided you continue to pay the premiums as they are due.

At the end of the term, the coverage ends unless you renew the policy or switch to another one.

Term life insurance policies have either a level term, which means that the annual premium remains the same for the life of the policy, or a graduated term, which means that the premium is smaller in the early years and grows larger each year. In most cases, level term policies cost less if you keep the policy in force for the entire term.

Term policies don't accumulate a cash value, so you get nothing back if you end your coverage before the end of the term. However, term insurance may be less expensive than a permanent policy providing the same coverage, although the cost of new coverage increases as you get older.

References in periodicals archive ?
Under section 80C of the Income Tax Act, 1961, a term insurance policyholder can avail tax deductions of up to Rs 1.
But term insurance has the additional advantage that a portion can be sold in a life settlement and the balance of the policy retained.
Keep in mind, however, that buying term insurance means paying ever-increasing premiums for a constant amount of coverage.
It is up to the financial industry to better educate clients about whole life and term insurance, to help them make better life insurance decisions.
4 percent) but less likely to demand term insurance (29 percent vs.
With term insurance you pay your premiums and if you die before your policy expires, it pays benefit.
1) Term insurance is available in many forms, the most common being annual renewable, five-year renewable (and/or convertible), 10-year renewable and convertible (R&C), 15-year R&C, 20-year R&C, and term to a specific age, such as age 65.
If you have somebody making $50,000 a year and their group term insurance is $50,000 or $100,000 maximum, they're way underinsured to begin with, and they need to be supplementing that with some outside coverage," he said.
Most term insurance today is sold for fixed periods of time, ranging from five years to 30 years.
First of all, it is expensive; but more importantly, the better educated agents become, the more likely they are to reject the notion that term insurance is a cure-all.
Chances are, term insurance can meet most of your basic insurance needs.
Because term insurance isn't an investment scheme, it is generally all right to go for the policy which charges the lowest premiums for the level and term of cover you require.