Life Insurance Policy For A Specific Period Of Time Is Called

Term life insurance is for a specific period, is substantially cheaper, and has no savings plan built into it. Cash value life insurance is normally for life and is more expensive because it funds a savings plan. Term is definitely the wiser choice.. Life insurance (or life assurance, especially in the Commonwealth of Nations) 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 (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).. Some people are looking for life insurance for a specified period. This is looking for a specific type of insurance. There are many different types of insurance that are available. Some may wonder what is the purpose of only taking out insurance for life that has a time limit on it.. Term insurance policies are only designed to last a certain length of time, called a term. Once that period ends, ... The years in which you can convert and the products you can convert to will vary depending on your specific policy. ... and you buy a 30-year term life insurance policy to protect your family while you’re paying off that ....

Life Insurance Resource Center Basic Types Of Policies For the most part, there are two types of life insurance plans - either term or permanent plans or some combination of the two. Life insurers offer various forms of term plans and traditional life policies as well as "interest sensitive" products which have become more prevalent since the mid-1980 s .. A life insurance policy is a type of insurance that provides coverage against the unexpected death of the policyholder or after a set-period of time when the policy matures. In order to avail this protection, the insured pays a certain amount as premium towards maintaining the policy. It is nothing but a safety net which provides financial security/protection against loss of life..

In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay. In exchange for an initial payment, known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language.. Term life is also called temporary life insurance since it provides protection for a temporary period of time. The period for which these policies are issued can be defined in terms of years (1-year term, 5-year term, or 20-year term, for example) or in terms of age (term to age 45, term to age 55, term to age 70, for example)..