what does term life insurance mean
A simplified issue could be a good fit for you if that's what you're after:
Term life insurance is an affordable and simple way to ensure the financial well-being of your loved ones should something happen.
Term insurance is a type or life insurance policy with a set end date. It's usually 20 years from when it was purchased. The policyholder must die within the designated term to receive the death benefit. The death benefit refers to money that is paid to the beneficiary if the policyholder dies during the chosen term.
Term life policies may be purchased individually or in a group plan that is offered through an employer or civic organization.
The term and whole life insurance policies do not require medical exams. But, the death benefits for wholelife coverage are generally limited to $50,000 or lower -- this is tenfold less than what's typical for term life benefits. If an insurer does not offer coverage for medical exams with a higher mortality benefit, this usually means that the medical exam is dependent on your answers to health question.
The death benefit can replace financial support for decades. It will also ensure that your family does not have to worry about paying for college, funeral costs, care for your kids, and college tuition. This allows your spouse to continue saving for retirement or help an older parent.
A simplified issue could be a good fit for you if that's what you're after:
Term life insurance is an affordable and simple way to ensure the financial well-being of your loved ones should something happen.
These policies have higher premiums than traditional policies that include a medical exam. The results of your evaluation will determine if coverage is limited to $25,000-$300,000. Based on your policy, simplified insurance may be written to provide whole-life or term coverage.
According to National Association of Insurance Commissioners - NAIC, certain term policies can also have a return of prime features. You will receive back the premiums you have paid if the death benefit is not paid by the end term. This is a more expensive option.
Term insurance, also known simply as pure life insurance is a type of insurance that guarantees death benefits if the policyholder dies within a certain time frame. After the term ends, policyholders have the option of renewing the policy for another term, converting the policy to permanent coverage, and/or allowing the term insurance policy to end.
No-questions-asked coverage. Guaranteed issue will live up to its title, ensuring that you are protected regardless of age or your health. Permanent insurance is a type that lasts as long as the premiums are paid. Guaranteed issue can be helpful if you are suffering from a serious condition like heart disease or cancer.
Term coverage can provide temporary financial protection for your loved one during your working years. This is when the cost of insurance is usually less expensive. Its death benefits pay money directly into your beneficiaries to help with funeral expenses and ongoing financial obligations.
Once the term ends, the coverage ceases unless you renew the policy, purchase a new one, or convert it to a permanent policy. Some policies offer renewal options, though the premiums may increase.