What Is 5 Year Term Life Insurance?
0 POINTSContact Meview profileDavid RacichPROFountain Hills, Arizona5 Year Term Life Insurance can be annual renewable term or guaranteed level term. Using a short period for term life insurance can provide inexpensive coverage. Some short period term life insurance can also include a convertibility clause to permanent life insurance that could extend term coverage in the event that the original financial liability remains after five years or new liabilities have emerged.Answered on June 4, 2013+01+1 this answer
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63333 POINTSview profilePeggy MaceMost of the U.S.5 year term life insurance is life insurance that will usually stay the same price for 5 years. Not many companies sell 5 year term life, so the prices may not be as competitive as 10 year term, which is more popular and thus, often used in place of 5 year Term. There is no penalty to drop term life insurance before the term is up.Answered on July 29, 2013flag this answer
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaThe insurance company has an actuary who studies death statistics. This actuary will determine the likelihood that someone of your age will die in the next five years. With the addition of some expenses this then becomes the premium charged. The premium and the death benefit remain level. When the term ends the policy expires completely. Many short term policies have a provision to continue coverage, however, the premium tends to move dramatically upwards, because the older you get the more likely that you will die in the coming year.Answered on May 21, 2014flag this answer
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