0
Term insurance is best described as a type of life insurance that provides only death benefits without the accumulation of cash value.
Cash value can be compared to a savings account within the policy. An additional amount of premium is paid in addition to what is enough to compensate the insurer for taking the risk of the insured's death during the time the policy is in force. A premium is the periodic amount of money paid as the price of the insurance.
In contrast, term insurance has a lower premium than an equal amount of whole life insurance because there is no savings element. The person paying the premium is only paying for the death protection.
Because term insurance does not gather cash value the policy will terminate if a premium is not paid when due. This contrasts with whole life insurance where the accumulated cash value may be enough to keep the policy in force for a time even if further premiums are not paid.
Wiki User
∙ 6y ago
Add your answer:
Earn +20 pts
What term best describes the movement of continents?
The term that best describes the movement is gradual.
What term describes the movement of continents?
The term that best describes the movement is gradual.
What term best describes authors and artists who depict real life situations?
yellow journalists
What is the best term that describes the inner aspect of the ankle?
Medial Malleolus is the best term that describes the inner aspect of the ankle
What best describes the term Aztec “chinampas”?
The image describes it
Which term best describes cardiac muscle?
that best describes cardiac muscle is multincieated
Choose the definition that best describes this term.Aria?
Choose the definition that best describes this term. Aria.
5 Which term best describes the angle below?
There is no angle to refer to in this question. Therefore, no answer can be given as to which term best describes the angle referred to.
Which term best describes lactase?
Enzymes
What term best describes boron?
metalloid
What term best describes neon?
Bright
Which term best describes neon?
element
