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Name the characteristics of term life insurance:
Insurance for a term or temporary period
Define Term Insurance:
- A: Face amount payable only if death occurs during stioulated years.
- B: Protection is only for a limited number of years
- C: pays nothing if the insured lives past the end of the term coverage period.
What is the purpose and use of term life insurance?
- 1. its identifiable or specif needs such as mortgages or loans
- 2. Often sold when your need is great and money is little
- It protects future insurability when converted
What are the advantages of term life insurance?
- 1. its easy for the buyer to understand.
- 2. Maybe renewable or convertible
- 3. intial low costs.
What are some important features of term insurance?
Its can be converted or renewed. Convertabililty means the policy can exchange for a perm. type of coverage with out the need to prove insurability.
What are 2 disadvantages of term life insurance?
- 1. They have no cash value
- 2. Coverage is designed to end before death
Name 3 types of term insurance?
- 1. Level Term
- 2. Annual Term
- 3. Decreasing term
What is Level term - term life insurance?
Level Term is when premium and face values remain level. The policy is only for a specified number of years 5,10, 15 or 20 and meant to renew or be converted to something more.
What is Annual renewable term - term insurance?
Annual term is when the face amount remains the same but the permiums increase
What is Decreasing term - term insurace?
The face value decreases but the premium reamins level. Only this type is used for mortgages insurance - traditionl decreasing or are designed to decrease consisitenly to unpaid blanace of the mortgage
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