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Insurance & Risk Management
10. Chapter 11: Life Insurance/Uses and limitations of term life insurance
10. Chapter 11: Life Insurance Illustration
Syllabus Slides

Uses and limitations of term life insurance

01.Core Concepts

Term insurance is appropriate when: The amount of income that can be spent on life insurance is limited The need for protection is temporary The insured wants to guarantee future insurability However, Term insurance premiums increase with age at an increasing rate and eventually reach prohibitive levels Term insurance is inappropriate if you wish to save money for a specific need ‹#›