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How much coverage does term life insurance provide?
3 Answers
- DON WLv 72 weeks agoFavorite Answer
Term life insurance pays someone you name (your "beneficiary"), a certain amount if you die while the policy is still in effect (the "term" of the policy), assuming you've been making your regular payments to the insurance company (the "premiums").
If you get it through your employer, it's often for the amount of your annual salary, or for a multiple of your salary, such as 2x.
If you get it privately, it's for whatever you sign up for. It could be as little as $10,000 (sometimes called "funeral insurance") or as much as $1 million. The higher the coverage, the more you will pay in premiums. Be aware that you may be required to have a physical exam done by the insurance company and if you're not in perfect health, your cost goes up. Also, the older you are, the higher the cost will be. If you're using illegal drugs, you will probably be refused coverage.
- AnonymousLv 72 weeks ago
Whatever the face value of the policy you sign up for. Nothing more and nothing less.