Various Types of Life Insurance

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.

Description: Convertible term insurance is a type of insurance that can be exchanged (converted), at the option of the policy owner, for a permanent type of insurance policy if his life conditions change.

Features: Benefit:

The conversion can be performed without any further application procedure, such as a health examination.