Term insurance is a death policy with a predetermined coverage period. An insurance benefit is paid out only when death occurs during that period. No payout is made if the insured is alive at the time of policy expiration. Once the policy is expired, the policyholder may decide whether to extend the policy period or let the coverage end. The coverage period is usually one, three, or five year(s), and most policies are subject to annual renewal.
Q. What is Whole Life Insurance?
Whole life insurance offers life-long protection, and a death benefit is paid to a designated person when the insured dies. A whole life policy serves as a useful means of maintaining the financial security of a household in the event that its primary income-earner dies. It also functions as an investment or savings vehicle as its cash value grows every year, providing a nest egg for retirement.
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