Term Life Insurance Definition Wikipedia

As a life insurance policy it represents a contract between the insured and insurer that as long as the contract terms are met the insurer will pay the death benefit of the policy to the policy s beneficiaries when the insured dies.

Term life insurance definition wikipedia. Whole life insurance or whole of life assurance sometimes called straight life or ordinary life is a life insurance policy which is guaranteed to remain in force for the insured s entire lifetime provided required premiums are paid or to the maturity date. Term life insurance or term assurance is life insurance that provides coverage for some sum of money during a given period of time. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. The policy is debited each month by a cost of insurance charge as well as any other policy charges and fees drawn from the cash value even if no premium payment is made that month.

The policyholder does not get any monetary benefit at the end of the policy term except for the tax benefits he or she can choose to avail of throughout the tenure of the policy. Term insurance is the cheapest way of buying live insurance. An entity which provides insurance is known as an insurer insurance company insurance carrier or underwriter a person or entity who buys insurance is known as an insured or as a policyholder. Interest credited to the acco.

Individuals who require long term care are generally not sick in the traditional sense but are unable to perform. Long term care insurance ltc or ltci is an insurance product sold in the united states united kingdom and canada that helps pay for the costs associated with long term care long term care insurance covers care generally not covered by health insurance medicare or medicaid. Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified term of years. Term life insurance also known as pure life insurance is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during.

The policy holder typically pays a premium either regularly or as one lump sum. Universal life insurance is a type of cash value life insurance sold primarily in the united states. Insurance is a means of protection from financial loss. After the term stated in original contract expires the sum of money paid to insurance company will need to be renegotiated and will often increase.

Other expenses such as funeral expenses can also be included in the benefits. Under the terms of the policy the excess of premium payments above the current cost of insurance is credited to the cash value of the policy which is credited each month with interest. What is term life insurance. The basic premise of a term insurance policy is to secure the immediate needs of nominees or beneficiaries in the event of the sudden or unfortunate demise of the policy holder.

Life insurance is a contract between an insurance policy holder and an insurer or assurer where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium upon the death of an insured person. Depending on the contract other events such as terminal illness or critical illness can also trigger payment. If the insured dies during the time period specified in a term.