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 ?
Term insurance is also available online at very cheap rates, bringing the price down further.
Nghikembua said the change is important for many reasons including that it localises the Namibian short term insurance business.
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.
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.
There are a number of slightly more elaborate term insurance policies which your financial adviser may want to talk to you about.
His premium is based on the insurance carrier's least expensive term insurance policy rate.
Nakaziko said the growth of short term insurance companies in the country faces many challenges and is therefore growing at a very slow pace.
Convertible Term Insurance may be converted into permanent cover when your original policy's term comes to an end, usually by buying whole of life insurance or an endowment policy.
Conversion privileges with multiple product options can be crucial to the consumer who purchased term insurance at ultra-preferred rates at age 29 but has grown into a 38-year-old cancer survivor or a 42-year-old with weight issues, high blood pressure and high triglycerides.