Page 5 - Life Assurance
P. 5
ment. In this regard they are similar to other
types of insurance in property and liability lines.
Term contracts therefore provide a greater
amount of pure protection by paying premium
less than any other type of insurance.
For this reason term insurance is used
most often when:
1- The maximum coverage is desired and
the amount available for premiums is limited.
2- The period during which the protection is
needed does not extend after age 65.
- Level-Term Contract:
A level-term contract is issued for a certain
term. For example 5 years, 10 years, or 20 years
renewable term, and term to 65.
Level-term contracts are practically always
renewable without evidence of insurability; thus,
an objection is removed that was formerly
attribute able to this type of contract in that an
insured's policy could expire and leave this
person without protection and uninsurable.
Un-insurability in life insurance generally
means that a person's physical condition is
such that the individual cannot meet the
105 Life51/life/life 08
types of insurance in property and liability lines.
Term contracts therefore provide a greater
amount of pure protection by paying premium
less than any other type of insurance.
For this reason term insurance is used
most often when:
1- The maximum coverage is desired and
the amount available for premiums is limited.
2- The period during which the protection is
needed does not extend after age 65.
- Level-Term Contract:
A level-term contract is issued for a certain
term. For example 5 years, 10 years, or 20 years
renewable term, and term to 65.
Level-term contracts are practically always
renewable without evidence of insurability; thus,
an objection is removed that was formerly
attribute able to this type of contract in that an
insured's policy could expire and leave this
person without protection and uninsurable.
Un-insurability in life insurance generally
means that a person's physical condition is
such that the individual cannot meet the
105 Life51/life/life 08
