Life Insurance Policy 5 Year Term

The working of a 5 year term life insurance policy is simple to understand, with a straightforward working methodology. Under the plan, an individual is expected to pay premiums for the duration of this policy and he/she is entitled to protection during this term.. When we talk about life insurance policies, then 5 years is relatively a short period of time. However, there are many insurance buyers who want to opt for short-term plan rather than choose a long-term policy. The above listed LIC plans for 5 years come with the policy tenure option of 5 years.. An annual renewable term life insurance policy is only recommended if you need the policy to secure a short term obligation, like a 2 or 3 year loan. A Better Option Typically, you can find a better price on a 10-year term than you can for a 5 year term policy.. The term life insurance policy from New York Life is available in terms of five to 20 years and is also a policy that accumulates cash value. If you decide you want to extend your coverage, you have the option to convert to a permanent life insurance policy once the policy term ends. The death benefit is tax-free..

So, premiums for 5-year renewable term can be level for 5 years, then to a new rate reflecting the new age of the insured, and so on every five years. Some longer term policies will guarantee that the premium will not increase during the term; others don’t make that guarantee, enabling the insurance company to raise the rate during the policy’s term.. If you need a policy for a specific term of 5, 10, 20 or more years, term-life insurance gives you this option. A term life insurance policy is also more affordable than purchasing whole life insurance if you have budget considerations..

Select Term Life Insurance. With our Select Term Life Insurance, you can choose between 10, 20, or 30 years of coverage and a guaranteed benefit. You pick the length of time depending on how long you need it. You can also keep your policy in force, after the initial term, at an increased cost up to age 95. 2. A micro-insurance term insurance plan that offers returns of premiums on maturity of policy and also covers the insured person for accident benefit. The policy period of 5 years is applicable only for the 5 year premium paying term..