Term Insurance |
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 Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that limited period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. Under Term Assurance policy, only the risk is covered during the selected Term period. If the policyholder survives the term, the risk cover comes to an end. Theoretically, premiums paid are not returned. Term life insurance is the original form of life insurance .Much more common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.
- Term life insurance provides life insurance for a specific period of time, or “term”.
- insurance offers the users a choice of terms from 1 year renewable up to 30 year terms.
- Term life insurance is most useful when an insured person is relatively young and the need is for temporary or short-term coverage
- some insurers have created term life with a “return of premium” feature.
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