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What Is Guaranteed Term in Life Insurance?
<lingo>Guaranteed term life insurance is a term that offers a bit of misleading information. The policy is only guaranteed for the length of the term selected. Term life insurance policies typically remain in place for 10, 15, 20, or 30-year terms. After that time, the policy ends, the death benefit is no longer available, and the individual is able to determine if purchasing a new life insurance policy is beneficial. There are many companies that use the term guaranteed to provide some level of promise of coverage, but there are still terms that apply.</lingo>
Guaranteed Term Life Insurance Clearly and Briefly Explained
Term life insurance can vary from one company to the next. The exact terms of any policy should be understood by the person seeking the policy long before he or she chooses to buy it. With guaranteed term life insurance, the policy keeps the term selected at the start of the policy long term. For example, the premiums are fixed, which means they do not change over the term or length of the policy.
In addition to this, the death benefit, which is the amount of money the policy pays out if the covered person dies while the policy is active, also remains the same. It does not change after the initial period. That means the individual buying the policy can count on it to be what they need and want long term.
<twitter>Guaranteed term life insurance is a term that offers a bit of misleading information. The policy is only guaranteed for the length of the term selected. Term life insurance policies typically remain in place for 10, 15, 20, or 30-year terms.</twitter>
Guaranteed death benefits in a term life insurance may have some limitations, too. For example, some policies restrict access if the covered individual dies due to suicide.
It is important not to mistake guaranteed term life insurance for a guaranteed issue policy. A guaranteed issue life insurance policy is one offered by a company that promises to issue the life insurance no matter the age and health of the applicant. These policies also have restrictions, such as requiring the individual to be over a specific age. Medical questions may apply in some cases, too. The guarantee comes into play in that the applicant’s health is not the sole driver of issuing a policy.
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