What is the most cost effective life insurance type?
Term Life Insurance Term life insurance is the most affordable type of life insurance. It can further be classified into level term insurance, decreasing term life insurance, and increasing term life insurance. What Is Term Life Insurance? Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate. How Term Life Insurance Works? When you buy a term life insurance policy, the insurance company determines the premiums based on the policy's value( the payout amount) and your age, gender, and health. In some cases, a medical exam may be required. The insurance company may also interrogate about your driving record, current medications, smoking status, occupation, hobbies, and fam...