What Is A Term Insurance Plan?
Term plans are initially the least expensive and least complicated
type of life insurance. It provides pure protection at an initial
low cost for a specified period of time only, such as 1, 5, 10,
20 and maybe more.
If we died within the term period, a death benefit is paid to our beneficiaries. If we are still living at the end of the term, protections ceases unless the policy is renewable.
Who's It For?
People with temporary or limited time
period needs, e.g. duration of a mortgage.
What Are My Benefits?
It provides insurance protection to us at a low cost for specific period of time. If our needs change, some policies allow us to exchange our term policy for a permanent plan without having to take a medical exam or provide other information about our health.
What Might Be A Drawback?
Premiums generally increase with our age, see terms of each policy. Policy will be lapsed for non-payment if premium is not received within the grace period. Once the term period expires, the insurance coverage ceases and policy has no further value.