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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