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The Curious Bag
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A true term life insurance policy pays a death benefit to a beneficiary if the insured person dies during the finite period when the policy is in effect.
Term of Coverage
Term life insurance is commonly purchased for a term of five, 10, 15, 20, 25 or 30 years. The premiums remain constant throughout the term of coverage.
Renewable Term
A term life policy can be purchased as a renewable policy. Each time the policy is renewed, the premium becomes more expensive due to the increasing age of the insured.
Annually Renewable Term
Annually renewable term life insurance gives the policy holder the option of renewing the insurance each year. The premiums will go up according to the attained age of the insured when it is renewed.
Level and Decreasing Term
There are two basic types of term life insurance. Level term pays the same amount of death benefit upon the death of the insured throughout the length of the policy. Decreasing term insurance offers a death benefit that decreases over time.
Convertible Term
A term life policy purchase with a convertible provision can be converted to permanent or whole-life insurance at any time without proof of insurability.
Cash Value
Term insurance does not offer cash value accumulations or policy loans.
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