A class of life insurance intended to provide a death benefit for a limited period of time (i.e. 10, 15, 20, or 30 years). Term insurance is best suited for individuals and businesses that have a temporary life insurance need such as covering a loan, mortgage or a key person/breadwinner. Term insurance typically has the following benefits:
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Level premiums and death benefits for a specified period of time
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Lower initial premiums than permanent insurance
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Conversion to permanent insurance for a period of time without medical questions
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Includes “return of premium” term products designed to return all life insurance premiums to the owner of the contract at the end of the coverage period