Term life insurance is usually the least expensive type of insurance for younger individuals. An insured purchases a life policy and agrees to pay a premium for a certain number of years, normally 5, 10, 20, or 30 years.

In exchange, in the event of death during the term of the policy the insurance company agrees to issue a payment equal to the face amount value of the policy to the insured’s named beneficiaries. In writing a term insurance policy the insurer uses actuarial tables to determine the probability of the insured event (death) possibly occurring during the policy term and calculates the appropriate premium to allow the insurer to pay claims and achieve an appropriate level of profit.

Upon expiration of the life policy if the triggering event (death) has not occurred, the premiums remain with the insurer and the life insurance policy lapses.

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John Harris, is a licensed Cemetery Broker in the State of California. He has personally served over fifteen thousand families in preparing for cemetery and funeral services. He can be reached through his website: http://www.cemeterybroker.com

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This entry was posted on Saturday, November 25th, 2006 at 4:36 pm and is filed under Life Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.