Term Life Insurance Benefits Florida FL
Reader’s Question:
How can I benefit from a 10 year term life insurance in Florida? Is there a cash value with this term?
Jane
Miami FL
A 10 year term life insurance has no cash value accumulation or dividends to earn. It is a pure insurance. The premium of this term life insurance is affordable and remains level until the end of the 10 year period ends. This means that the premium does not increase. The death benefit of a 10 year term life insurance remains level. Upon your death, this will be paid to your beneficiary free of income tax unless you make the proceeds as a portion of your estates.
If you want to renew your Florida life insurance policy when year 10 ends, some companies may require you to present an evidence of insurability. After the life insurance policy renewal, your premiums will increase. Some companies do not allow life insurance policy renewal after 10 years. However, they offer a conversion privilege where you can convert to permanent life insurance policy after the 10 year period.
This type of term life insurance policy is usually used by business people to fund buy-and-sell agreements or cover outstanding loans. If you are still young, short of cash and would like to invest or save, this is the right life insurance for you.
Tags: life insurance, term life insurance
Loading ...