|
A principal quality of term insurance is that it is temporary insurance,
which exists for a given period of time such as I year, 3 years, 8 years,
15 years. You pay a fixed amount in premium for the period of its term.
If you don't die in that term, the policy expires and protection ends.
Most policies include a renewal option. On each renewal, the premium
rises for the same amount of insurance, and usually the renewal options
expire at age 65 or 70.
Term insurance requires the smallest outlay of cash. But in the long run,
term is not inexpensive. Over a period of years, your total net cost for
term will exceed the total net costs (net premium less cash value) of
permanent insurance. There are many situations where term insurance is a
useful solution, such as mortgage insurance and many business and
investment situations.
|
Long-Term Care
• 
Supplement
