by Rynaldo Stoltz

Created on: June 18, 2009

Term Life Insurance/Term Life Assurance

What is Term Life Insurance?

Term Life Insurance is also known as Term Assurance, or Term Life Assurance. This type of Assurance provides Term Life Insurance for a limited period of time. After that period, the policy holder can either drop or annually pay the increasing policy premiums to continue the coverage. This life assurance is also known to be the cheapest and best way of purchasing substantial death benefit. If the policy holder dies during the term, the death benefit will be paid to the policy holder's beneficiary. The Term Life Assurance is considered to be a normal type of Life Insurance purely offers insurance protection because it builds no cash value to it.

The main Types of Term Life Assurance:

1. Level Term Life Insurance.

This Type of Insurance is also known as Level Term Assurance, and provides the policy holder with a fixed amount of coverage with fixed premiums over a certain period of time. Usually this type of Term Assurance is purchased in 10-year increments. The Level Term Assurance is usually sold with guarantee that the premiums stay constant, and never increase throughout the duration of the policy.

2. Increasing and Decreasing Term Life Insurance/Term Life Assurance

With this type of insurance, the amount of coverage may increase ir decrease throughout the term, with the premiums remaining level.

3. Renewable Term Assurance

The Renewable Term Assurance is a ordinary level term insurance that provides the policy holder with the option to renew the Term Insurance coverage at the end of the term without evidence of insurability. The Renewable Term Assurance is ideal for those who wish to provide large sums for their family at economical premiums.Endowment Assurance. The convertible term assurance is a good option to those looking to save on premium costs.

5. Group Term Life Insurance

The Group Term Life Insurance, or Grouper Term Assurance as it is better known, is a type of insurance that is typically purchased by employers, professional associations or companies, and is intended to cover several/groups of individuals at once. The group term assurance benefits all the beneficiaries. This option usually results in the premiums being lowered.

Other Types of Term Assurance:

1. Pension Term Assurance

The Pension Term Assurance policy is a type of life cover that is designed to pay your dependents a guaranteed lump sum if you die during the term and duration of

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