Hinterhaus Productions / Getty Images Convertible term is a form of life insurance that allows you to exchange it for permanent life insurance without going through the insurance company’s underwriting process. Learn more about convertible term life insurance, including how it works and whether it might be a good life insurance choice for you. Definition and Examples of Convertible Term Life Insurance Life insurance policies take two basic forms, either term insurance or permanent life insurance. Permanent life insurance is designed to last a lifetime, no matter how long you live. Term policies are designed to last only a certain number of years, usually anywhere from 5 to 30 years or...
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Group term life insurance is an insurance policy offered to all members of a group. The group usually is employees of a particular company, but it may also be members of another type of group, such as a membership association or labor union. Employers often provide group term life insurance as an employee benefit. If I have group term life insurance, do I need individual life insurance? While group term life insurance through your employer can be a great benefit, you may want to consider supplementing your group insurance with an individual life insurance policy, which offers a bit more security and control. Group term life vs. individual term life insurance Your employer may offer a...
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One of the age old debates when someone decides that they need to buy life insurance is what is the best kind to purchase. There are so many flavors and options it can become overwhelming. Rather than hashing that out today, we felt it best to focus on simply defining one of the most useful kinds of life insurance in the market place today. Term Life Insurance. What Is It? The name Term Life Insurance implies that the company is providing coverage for a defined period of time, otherwise known as the Term. At it's simplest, the insurance company will provide an amount of money to the beneficiary of the policy upon the death of the named insured if the policy is in force. Because there is a...
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Term Life Insurance Meaning and Definition Posted by Grace | Forex Trader under Insurance on February 11, 2017 What is term life insurance? Can you define it using your own words? The “Term life insurance” is our topic for today! Many times we talk about life insurance and its types. There are different types of insurance you should know. Today, we will only talk about the meaning and definition of term life insurance and what it is all about. In personal finance, a CFP or a certified financial planner will suggest to you to buy an insurance first before you invest your money. Will this simply means “you can’t invest without insurance?” Nope, you can still invest even...
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Define Term Life Insurance Define Term Life Insurance. Definition, advantages of term life insurance, and whether you should get them at all. Term Life Insurance Definition What is term life insurance? Term Life Insurance policies are fixed term policies that offer only death protection for a fixed amount of time. Advantages of Term Life Insurance Term Life Insurance is highly affordable, and thus also one of the most popular types of insurance policies. Term Life Insurance Premiums Term life Insurance policies have low and highly affordable premiums, largely because these policies carry no cash value and only offer protection for a limited amount of time, usually up to 30 years....
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How to Define Whole Life Insurance How to Define Whole Life Insurance Whole life insurance is a form of permanent life insurance. Unlike term life insurance policies, which expire after a certain amount of time, whole life insurance policies remain in effect for the policyholder's entire life, as long as the premiums are paid on time and in full. Whole life insurance policies also accumulate cash value over time. Policyholders may be able to borrow money against the value of their policies, and may be able to secure dividend payments from their policies. Types of Whole Life Policies As you define whole life insurance, it’s important to note the different types of whole life policies...
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Key Factors that Define Term Life Insurance Term life insurance is the original form of life insurance. It is used to give life coverage to the subscriber who will pay a fixed charge either annually, biannually, quarterly or monthly. After the expiry of that period, the client or the subscriber will have to either forgo the coverage or renew it at rates that might be higher. To define term life insurance is to understand it. Your understanding will save you money in the long term. The advantage to the client is that they get life coverage. This means that the insured amount will be paid to his family in case he or she dies. You can purchase an appreciable amount of life insurance cover...
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How to Define Term Life Insurance What is term life insurance? I found a definition on Wikipedia to help define term life insurance. Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis. Let's look deeper into some of these statements and see if we can gain a different...
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Definition The most basic form of life insurance a consumer can purchase is referred to as term life insurance. Coverage is provided for a fixed term, using a guaranteed payment schedule. Term life insurance only provides a death benefit to the policy beneficiary and is considered the most efficient means of replacing lost income. Explanation Term life insurance provides affordable income-replacement protection for a predetermined period of time. The premium on the policy is often guaranteed at the time the policy is signed. At the end of the premium guarantee period, usually 5, 10, 20, or 30 years, the policyholder can renew at higher premium levels. Unlike other life insurance policies,...
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