Basics of term life insurance - Part 7
By admin on March 4th, 2010- is a life insurance which expires after a certain time frame such as 10, 15, 20, 25, 30 years term or expiry at age 50, 55, 60, 65, 70 etc.
- it provides insurance coverage for death and total and permanent disability benefits, but unlike a whole life insurance, the term life is insurance generally does not have a cash value.
- term life insurance is available in 3 different types of sum insured i.e. level, increasing and decreasing.
1) Level Term Life Insurance
-provides a death sum insured that remains the same amount over the terms of the policy.
2) Increasing Term Life Insurance
- provides a death sum insured that increases over the period of the term of the policy and by the end of the term the death sum insured is doubled compared to the initial sum insured.
3) Decreasing Term Life Insurance
- the sum insured decreases over the period of the term of the policy and by the end of the term, the deth sum insured is zero.
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