Question

1. Please explain how term and cash value policies work.

2. what is the benefit of a renewable and convertible.

Answer 1

1. The term policy is an insurance policy that is offers financial coverage upon the death of the holder over a specific time period. If the policy holder lives, then there is no benefit.

Cash value is a type of term policy that also has a surrender value. When the insurance policy holder lives on above the term policy, the insurance firm pays cash value for the surrender of the policy.

2. Renewable or convertible insurance policy allows the holder of the convert his policy to a term policy which would permanent in nature.