What is Term Life Insurance? How does it works?
Term life insurance is a simple form of insurance protection that remains in effect for a specified period of time.
A term life insurance policy is a type of insurance that is in effect for a limited period of time, such as 20 or 30 years.
If the policyholder dies of a covered cause while the coverage is in effect, the insurer pays the death benefit .
If a policyholder survives, the policy terminates and no benefit is paid. In term life insurance policy only death benefit is available and not maturity benefit.
Term life insurance is quite affordable and the premium can be very low, especially if it is bought by young people. It provides significant protection.
Surviving family members can survive a deterioration in their quality of life due to the loss of the deceased person's income.
Consumers can buy a term life insurance policy from multiple insurance companies. Many companies require a medical exam, but not all do.
If the policyholder dies of a covered cause during the coverage period, the beneficiary receives the death benefit. This money is usually passed on to the beneficiaries tax-free.
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