TERM INSURANCE FREQUENTLY ASKED QUESTIONS AND ANSWERS

Q: What is Term Insurance?

A: Term insurance is life insurance that remains in effect for a specified period—or term—after which coverage expires.

Q: What Specified Periods or Terms are There?

A: The term period may be one year, five years, ten years or more. They usually run in five year increments but not longer than thirty years depending on age.

Q: Is Term Insurance Expensive?

A: No, term life insurance is the least expensive form of life insurance.

Q: Does the Premium Increase?

A: The premium will usually increase at the end of specified period or term for the next specified period or term. Premiums increase based on the insured's attained age at renewal.

Q: Are there Different Types of Term Life Insurance?

A: Yes, there is Level Term Insurance, Decreasing Term Insurance, and Increasing Term Insurance. Level Term Insurance is the most common today.

Q: Does Term Insurance Provide any Cash Accumulation?

A: No, there is no cash value accumulation with term insurance. The purpose of term insurance is to provide needed protection for a specified period.

Q: Can Term Life Insurance be Changed?

A: Yes, most term life insurance can be converted to a permanent plan of insurance with without proving evidence of insurability.

 

Call our financial service representitive at (937) 746-1520 x1126 or x1230

These products are not bank products. These products are offered through a strategic alliance agreement between Ralph E. Wade Insurance Agency Inc. and The Community National Bank. The products are not FDIC insured, not a deposit, may lose value and do have a bank guarantee. The products are not insured by any federal agency.