Question: Which Of The Following Best Describes Term Life Insurance?

The following best describes term life insurance: The insured pays a premium for a specified number of years.

What exactly is term life insurance?

Term insurance is a life insurance product, which offers financial coverage to the policyholder for a specific time period. In case of death of the insured individual during the policy term, the death benefit is paid by the company to the beneficiary.

Which of the following is characteristic of term life insurance?

The policyholder pays premiums for the whole size of the time period with a view to preserve insurance coverage protection. Some of the essential traits of these insurance policies are low premiums, no money worth, and it’s for a set size of time, not like entire life insurance policies.

What is the use of term insurance?

Term insurance plans offer financial security for the entire family in case of the unfortunate death of the policyholder. Also, you can get optional coverage for critical illnesses or accidental death. You are covered for a long duration, while the premiums are affordable.

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What is term insurance and how it works?

Term insurance is pure protection life insurance policy. It provides coverage for a defined period in exchange for a specified premium amount. In case of an unfortunate event during this time-frame, the insurer provides a guaranteed# payout. It compensates your nominee for the loss of your income.

Which of the following features of term insurance allows the policy to be renewed at the end of a specified period without evidence of insurability?

Most term policies include a conversion option that guarantees policyowners the right to convert the policy to permanent protection without having to provide evidence of insurability.”

Which of the following are the main characteristics of variable life insurance policies?

The main features of a variable universal life policy are a mix of those typically found in variable life and universal life policies:

  • Your premiums are adjustable.
  • You have investment variety and risk.
  • You can increase the death benefit.
  • You can withdraw or borrow from it.

What is term insurance and why it is important?

Term plan is the purest form of life insurance. It not just ensures your family’s financial security, but also gives an option to protect them from critical illnesses such as cancer, heart diseases, etc.

What is term insurance and its benefit?

Term insurance plans provide financial security to the family of the beneficiary in case of death of policy holder and also get optional coverage for critical illnesses or accidental death. Affordable premium, life coverage with financial security and income tax benefits is an important feature of term insurance plans.

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What are the four types of term insurance?

Term insurance plans, too, come in various forms. Namely, level term insurance, increasing term insurance, decreasing term insurance, the return of premiums plans, and convertible term plans.

What is term policy meaning?

Term insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates. The benefit amount is paid out to the nominee in case of death of the person insured during the term of the policy.

For which of the following needs is term life insurance best suited?

Term life insurance is well suited for all the following needs EXCEPT: a source of emergency cash for any financial need. Because it only offers protection for a limited time, term life is best used for temporary needs that have a defined end-date.

What do you understand by the term policy?

Policy is a deliberate system of guidelines to guide decisions and achieve rational outcomes. A policy is a statement of intent and is implemented as a procedure or protocol. Policies are generally adopted by a governance body within an organization. Policy differs from rules or law.

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