erm Life insurance has assured that his home will be
been with us for a long paid for whether he or she lives
time. It is the least or dies.
expensive of all the life
insurance policies. Term life 2. Level Term - Level term
insurance is life insurance that insurance also provides
provides protection for the named protection for a specific time
insured over a stated period of period. The face amount remains
time. That is what differentiates level throughout the stated
it from other forms of life period. This policy is often
insurance. Term insurance has no purchased for short term debt or
equity or cash value accumulation intermediate term debt. You can
and so it is primarily purchased purchase 5, 10, 15 and 20 year
for the security provided by the term policies from most insurance
death benefit. There are three companies.
basic forms of term life
insurance. 3. Annual Renewable - This form
of term insurance is the least
1. Decreasing Term - This policy recognized of all term policies.
is most commonly associated with It provides a level amount of
mortgage protection insurance. insurance but the premium
The face amount decreases over a increases each year at the policy
stated period of time. A thirty renewal date. The premiums can be
year mortgage for a homeowner is very low at first but can
appropriately insured by a thirty escalate into very high premiums
year decreasing term policy for as the insured gets older.
the same mortgage amount. The
mortgage balance and the term All of these term life insurance
policy decrease at about the same policies have there advantages
rate and so the homeowner can be but the common denominators that
give term life insurance its equity or cash value
definition remains the same. The accumulations. Those two features
policy is always for a stated define term life insurance.
period of time and there is no
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