When you buy term life insurance, the premium is set by the insurance company based on your age, gender, and health, as well as the policy’s value (the payout amount).
The company’s business expenses, investment returns, and age-specific mortality rates are additional factors that influence rates.
A medical examination may be required at times.
Your driving record, current medications, smoking status, occupation, hobbies, family history, and other similar information may also be asked by the insurance company.
The insurer will pay your beneficiaries the face value of the policy if you pass away during the policy’s term.
Beneficiaries can use this cash benefit, which is rarely taxed, to pay for things like healthcare and funeral costs, consumer debt, mortgage debt, and other costs.
However, beneficiaries are not required to pay off the deceased’s debts with the insurance funds.
