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Term Insurance covers you for a term of one or more years. It pays a death benefit only if you die in that term. Term insurance generally offers the largest insurance protection for your premium dollar. It generally does not build up cash value, but there are Term policies that offer Return of Premium riders that will refund your premiums if you out live the term. You can renew most term insurance policies for one or more terms even if your health has changed. Each time your renew the policy for a new term, premiums may be higher. Ask what the premiums will be if you continue to renew the policy. Also ask if you will lose the right to renew the policy at some age. For a higher premium, some companies will give you the right to keep the policy in force for a guaranteed period at the same price each year. At the end of that time you may need to pass a physical examination to continue coverage, and premiums may increase. You may be able to trade many term policies for a cash value policy during a conversion period, even if you are not in good health. Premiums for the new policy will be higher than you have been paying for term insurance.
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This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, or accountant. | |||||||||