
Some Important Features of Term Life Insurance
- This is pure insurance because when you get a term insurance plan then you are actually purchasing a death benefit. Apart from other types of insurance like whole life, universal life, and variable universal life, there is no extra cash value built up in this kind of insurance policy. This is the only insurance policy, which gives a specific death benefit.
- The coverage in this type of insurance is for a the term such as one year, five years, ten years, fifteen years, and so on. When one gets the term life insurance then it remains in force until the finish of the term, assuming he/she is paying the premiums on time.
- Most of the term life insurance plans are renewable at the end of policy term. With Level Term Life Insurance, the death benefit remains similar during the term of the insurance policy, but the premium will increase gradually because the insured person is getting older. On the other hand, in decreasing term life insurance policy premium remains the same, but the death benefit goes down with the time.
- Most of the term life insurance plans can also be converted to permanent insurance plans within specific years. A permanent insurance plan accumulates cash value, which enhances the death benefit paid to the beneficiary.
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