Term life insurance provides a death benefit only. It does not build cash value.
Three Types Of Term Insurance
-Annual Renewable Term
Death benefit remains level. Premium increases annually since there is an increased likelihood of death.
-Level Term
Both the death benefit and the premiums remain level for a predefined period of time; usually, five, ten, fifteen or twenty years.
-Decreasing Term
The death benefit decreases each year even though the premiums remain level. This type of term is often used to cover a mortgage or other loan with a decreasing balance.
Characteristics Of Term Insurance
-Low cost in the beginning
-Premiums increase over time
-Can help to meet specific short-term needs
-Has no cash value
-Lasts a specific period of time... no more; no less.
