Life Insurance Coverage Details - Term Life Premiums

Term life premiums are life insurance payments offered at a fixed rate for a specific amount of time, or the term. Term life insurance is the most inexpensive way to obtain insurance coverage, since during the relevant term (10, 20, or 30 years) the payment is fixed. Once the term expires, the rate of term life premiums may change, forcing the client to forget about coverage or get new coverage at a possible higher rate, depending on any changes or conditions that may have occurred during the previous term. If during the relevant term the insured dies, the insured’s beneficiary will receive the death benefit.

Like most other types of insurance, term life insurance satisfies a claim against the insured as long as the premium is current and the term hasn’t expired. Similarly, if no claim is filed, the insurance company does not expect premium returns, meaning that should nothing happen to the insured during the term of the insurance, just like car and homeowners insurance, there will not be a refund of the premium. This is called risk protection.


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