The Facts About Term Life Insurance
- Karl Smith
- Mar 10, 2023
- 1 min read
What is term insurance?
Term insurance is a type of life insurance that provides coverage for a specific period of time, typically ranging from 1 to 30 years. If the policyholder dies during the term of the policy, the death benefit is paid to the beneficiaries tax-free. If the policyholder does not die during the term, the policy will expire without value.
Important information:
Term insurance provides coverage for a specific period of time.
The death benefit is paid to the beneficiaries tax-free if the policyholder dies during the term.
The policy will expire without value if the policyholder does not die during the term.
What are the benefits of term insurance?
Term insurance provides several benefits, including:
Cost-effectiveness: Term insurance is typically the most affordable type of life insurance, making it accessible for people on a budget.
Simplicity: Term insurance is straightforward and easy to understand, with no complicated investment components or riders.
Flexibility: Policyholders can choose the term length and coverage amount that meets their specific needs.
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