This is by far the most common type of life insurance used by Member firefighters to protect their families. With TERM life insurance, a policy is issued at a fixed cost, and remains in effect for a period of many years. During that period, death under virtually any circumstances results in the payment of the benefit to the designated beneficiary. When the policy expires, coverage terminates. There is no refund of premiums paid, nor is there any cash value accumulated.
The advantage of term life insurance is that it protects a family from a potentially devastating financial loss should a Member die during a fixed period of years. It is also among the most affordable types of life insurance, making it ideally suited for Members with growing families, and lots of responsibilities.
The disadvantage of term life insurance is that once the policy expires, the coverage terminates. A Member who had suffered an adverse medical experience during the period of coverage may find it difficult, and expensive to secure a replacement.
TERM life insurance is an excellent choice for
• Mortgage protection, meaning keeping the family in the house if
the primary breadwinner dies, and leaves a lot of bills to pay.
• A Spouse with important income, or child rearing responsibilities.
Click HERE for additional information on TERM life insurance coverage through the CPF HBT.