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Long Term Care Policies – The Basics

Term life insurance provides a death benefit only. It does not build cash value.

Three Types Of Term Insurance

Annual Renewable Term

Death benefit remains level. Premium increases annually since there is an increased likelihood of death.

Level Term

Both the death benefit and the premiums remain level for a predefined period of time; usually, five, ten, fifteen or twenty years.

Decreasing Term

The death benefit decreases each year even though the premiums remain level. This type of term is often used to cover a mortgage or other loan with a decreasing balance.

Characteristics Of Term Insurance

Low cost in the beginning
Premiums increase over time
Can help to meet specific short-term needs
Has no cash value
Lasts a specific period of time… no more; no less.

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