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  • Which Places Are Safe
    • Fixed Annuities >
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  • How Safe Are They
    • FDIC - Federal Deposit Insurance Commission >
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    • NCUA - National Credit Union Association
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      • HOW FAST MONEY DOUBLES - RULE OF 72
      • Annual Percentage Yield Vs. Annual Interest Rate
      • Compound Vs. Simple Interest
      • Rate of Return
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      • Split Funding
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What is Term Life Insurance and the Different Types?

It should come as no surprise to you that “term” life insurance involves “time,” that it pays a death benefit to your heirs only if you (the insured) die during a specified period.  

Here Are Five Different Types of Term Life Insurance:
  1. Level Term:  Simply stated, Level Term provides you with a fixed amount of coverage (the amount of money the policy is worth to your heirs) with premiums (your cost of owning the life insurance) that are also fixed over a defined period – usually in ten-year increments up to thirty (30) years.
  2. Decreasing Term:  With this type of life insurance, your coverage decreases throughout the term; however, your premiums remain level (the same).
  3. Renewable Term:  This type of life insurance could be very important to you, especially if you have health issues later in life, because with Renewable Term, you (the policy owner) have the right to “renew” the insurance coverage at the end of the specified term without having to “prove” or submit evidence of your “insurability.”  
  4. Convertible Term:  With this type of life insurance you (the policy holder/owner) have the right to convert your term policy to a permanent policy (more on “permanent” insurance in just a moment).
  5. Group Term:  The key word is this type of insurance is “group,” and it refers to the type of life insurance an employer or professional organization, for example, offers to its employees or members.  Since Group Term Life Insurance is intended to cover several to possibly hundreds of people, it usually results in each person paying a reduced premium; however, most Group Term policies are not portable which means that the coverage ends when you cease employment or membership in the group.
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  • Questions to Ask Yourself About Your Life Insurance Needs
  • Basic Life Insurance Considerations
  • Common Uses For Life Insurance
  • Permanent Life Insurance
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Fixed Annuities

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Savings Bonds

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Social Security Planning

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Critical Illness Insurance

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Banks & Credit Unions

About Safe Money Places
Safe Money Places® and this website are operated by SMP International LLC. 
If you have an questions or concerns, please contact us at 1-877-844-0900 OR contact us by filling out our form. 

Safe Money Places® does not warrant anything on this website, although we hope everything is accurate. We do not provide tax, legal, accounting, or investment advice. You need to do your own homework and consult your own experts on your personal situation. This website is protected by applicable copyright laws. You may make or print one copy of any material for personal use, further copying or distributing is prohibited without prior written permission.
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Safe Money Places® is a registered trademark of SMP International LLC. Copyright 2005 - 2017
  • Which Places Are Safe
    • Fixed Annuities >
      • Fixed Annuities Overview
      • Fixed Annuity Benefits
      • How Fixed Rate Annuities Work
      • How Fixed Index Annuities Work
      • Differences Between Fixed and Variable Annuities
    • Social Security >
      • Social Security Overview
      • How Does Social Security Work
      • What Are My Social Security Benefits
      • What If My Spouse Is Deceased
      • Strategies For Maximizing Social Security Benefits
      • How To Estimate Your Social Security Benefits
    • Life Insurance >
      • Life Insurance Overview
      • Questions To Ask Yourself About Life Insurance
      • Basic Considerations For Your Life Insurance Needs
      • Common Uses For Life Insurance
      • Term Life Insurance
      • Permanent Life Insurance
    • Savings Bonds >
      • Savings Bonds Overview
      • How Savings Bonds Work
      • Savings Bonds Yields
      • Tax Advantages of Savings Bonds
      • Older Bonds / Baby Bonds
    • Banks and Credit Unions >
      • Banks and Credit Unions Overview
      • Certificates Of Deposits
      • Money Market Accounts
      • Savings Accounts
    • Critical Illness Insurance
    • Risk Money Places
  • How Safe Are They
    • FDIC - Federal Deposit Insurance Commission >
      • FDIC Overview
      • What Does The FDIC Cover?
      • How Does The FDIC Work?
      • Who Is The CDARS?
    • NCUA - National Credit Union Association
    • How Strong Is My Bank Or Insurance Company?
    • What Happens If The Bank Fails
    • What Happens If The Insurance Company Fails
    • Guaranty Associations (External Link)
  • Concepts
    • Wealth Transfer
    • Personal Pension Plan
    • Basic Money Math >
      • HOW FAST MONEY DOUBLES - RULE OF 72
      • Annual Percentage Yield Vs. Annual Interest Rate
      • Compound Vs. Simple Interest
      • Rate of Return
    • Financial Concepts >
      • Split Funding
      • Tax Deferral
      • Saving Too Conservative
      • Yield Ladders
      • Liquidity
    • Identity Theft Protection
  • Consumer Guides
  • Videos
  • Safe Money News
    • Current Issue
    • Digital Magazine
    • Subscribe
    • Contributors >
      • Raymond J. Ohlson
      • Steve Dinnen
      • TMA Small Business Accounting
      • Norm Wilkens
      • David Barker J.D.
      • Leo LaGrotte
      • Kim O'Brien
  • Resources
    • Ask A Question
    • FAQ
    • Financial Dictionary
    • Financial Basics Quiz
    • Calculators
    • Useful Tools and Links
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