Term Insurance Plans

1. Definition: Term insurance is a type of life insurance policy that provides coverage for a specific period, or "term," of years. If the insured person dies during the term, the death benefit is paid to the beneficiary.
2. Coverage Duration: Term insurance policies typically last for 10, 20, or 30 years. Some policies may offer coverage up to a certain age, like 65 or 70.
3. Premiums: The premiums for term insurance are usually fixed and are typically lower than other types of life insurance. Premiums may increase if the policy is renewed after the initial term.
4. Death Benefit: The death benefit is the amount paid to the beneficiary if the insured person dies within the policy term. This amount is chosen at the time of policy purchase.
5. No Cash Value: Unlike whole life or universal life insurance, term insurance does not build cash value. It is purely a death benefit product.
6. Renewability: Many term policies are renewable after the initial term expires, but the premium may increase based on the insured’s age at renewal.
7. Convertibility: Some term insurance policies can be converted to permanent life insurance within a specified period, without requiring a medical exam. This feature provides flexibility as life circumstances change.
8. Affordability: Term insurance is generally more affordable compared to permanent life insurance because it only provides coverage for a set period and does not include a savings component.
9. Ideal for Specific Needs: Term insurance is ideal for covering financial responsibilities that will diminish over time, such as mortgages, children's education, or income replacement during working years.
10. Simple and Straightforward: Term insurance policies are typically easier to understand and purchase compared to permanent life insurance policies, making them a popular choice for individuals seeking straightforward coverage.

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