What best describe life term insurance?

Answer 1

Life term insurance is temporary life insurance that lasts for a specific period of time. Term life insurance may last from 1-30 years. Common terms for term life are 10, 15, 20, or 30 year periods of coverage. If you outlive the term of your policy, the life insurance coverage expires. Renewable term life insurance allows you to renew your policy at expiration without having to take a physical exam to qualify for another policy. Term life is not an investment, there is no buildup of cash value within the policy.

Answer 2

Life insurance can be "Term" or "Whole Life". Term insurance is paid over a short period of time (such as 1 time a year) for a short period of coverage (such as one full year). Many parents buy (take out) Term Insurance on their school-age children, especially if the child plays sports. The coverage is for the school year, only, or covers 12 months on some policies. After that short period, the coverage expires. The policy would need to be re-issued and a new payment made. Term life insurance rates vary, often widely, depending on age, health, medical conditions, and usual activities.

Whole life insurance is paid monthly, for an indefinite number of years (usually until the person fails to pay or dies). Some Whole Life policies can be converted to a Paid Up-Whole Life policy. But generally, Whole Life means "covered for life--as long as you pay for life".

Given these descriptions, Term Life Insurance can be described as "short term for a shorter number of coverage at a set payment rate only for that year". Cost of renewal may change each year.

Whole Life can be described as "longer term life insurance for a longer period of time (lifetime) as long as monthly, bi-annual, or annual payments are made, and coverage then stays in force until money is no longer paid--or death."

Whole Life-Paid Up means you have a reduced total insurance amount, but never have to pay for it again. A paid-up policy just sits there until death.

Answer 3

"Leaving a huge corpus for your dearest ones, when you are no more on earth and see them smiling from heaven even in your absence".