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                          Term Life Insurance

Term life insurance is the simplest form of life insurance and typically, is the least expensive. The
premium is usually lower than other forms of Whole Life Insurance because no cash value is
accrued. There are two basic types of Term Insurance: Level Term and Decreasing Term.
Term Insurance pays a death benefit only if death occurs during the term of the policy, which is
usually from 1 to 30 years. If death occurs after the term has expired, no death benefit is paid.

Level Term:
A fixed amount of coverage with premiums that are also fixed over a certain period of time.
Common Types of Level Term:
�Annual Renewable Term
�Level Term (5 Year, 10 Year, 15 Year, 20 Year, 25 Year, and 30 Year)
�Term to a specified age (usually 65)

Decreasing Term:
The amount of coverage decreases throughout the term, though premiums typically remain
level. This type of insurance is often used for mortgage protection.

Renewable Term:
Includes a renewal provision that gives the policy owner the right to renew the insurance
coverage at the end of the specified term without submitting evidence of insurability.

Convertible Term:
Gives the policyholder the right to convert the term policy to a permanent/whole life policy.
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