Description: Term life insurance is a basic plan that has neither cash surrender value
nor loan value (an amount that can be used as collateral for a loan). Term
life insurance provides a pre-set amount of coverage if the policyholder
dies during the period of time specified in the policy. Features: Benefits:
Term life insurance is useful for providing coverage only during a
predetermined period of time, such as until one's children's are
grown. The period of coverage can be renewed at the end of the policy.
Term life insurance has a premium is set and predictable.
Disadvantages:
Term life insurance premiums rise dramatically as the insured person gets
older and the risk of death increases. Term life insurance has no cash
value or investment income. Cancellation of the policy before the term is
up results in loss of all premiums paid to that point. |
