Type of coverage:
Premium and death benefit can be guaranteed
1, 5, 10, 15, 20, 25 or 30 years, depending on policy.
Guaranteed for the selected term but will
Term insurance offers the highest amount of insurance for
Guaranteed for the selected period of time but lapses thereafter.
Alternative: While it is not considered "cash
value", some companies do offer a policy with "ROP"*.
TERM WITH ROP = Return Of Premium. This plan refunds all the
premiums spent at the end of the term.
Term insurance offers the highest amount of death benefit
for the lowest premium.
It is often used to protect against untimely death and loss
of income and to pay for temporary needs like raising children,
education, mortgage, etc
When shopping for term insurance make sure that the policy
allows for a conversion from term insurance to permanent insurance
at any time throughout the term.
This allows you to renew your policy end the end of the term,
for one additional year at a time, at the current premium.
* Term with ROP cannot be compared with
Universal or Whole life insurance since no cash value is accumulated
and the death benefit is only temporary. However, term with
ROP will refund all premiums paid at the end of the term.