Life Insurance Glossary
Level Term
Level term is the most basic type of life insurance. Normally the cheapest forms of life cover. The premium is normally fixed per month over the life of the policy. The amount of life cover (also known as the sum assured) is guaranteed for a fixed term. The fixed lump sum amount is paid out if an individual dies within the policy period.
Convertible Term
This is a form of level term life insurance with the flexibility of converting the policy into a whole life policy or endowment policy at a future unspecified date.
Decreasing Term
A lump sum policy to repay the outstanding balance of the mortgage (also known as mortgage life insurance). This type of life insurance decreases at a fixed rate.
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