2. Write and explain the classification of term life insurance(8 pt)

Term life insurance can be classified in several ways:**1. By Term Length:*** **Level Term:** This is the most common type. The death benefit remains level (the same) throughout the policy's term. Premiums are also typically fixed for the duration of the term. *Explanation:* This provides predictable coverage and cost for a specific period, such as 10, 15, 20, 25, or 30 years.* **Decreasing Term:** The death benefit gradually decreases over the policy term, while premiums remain level. *Explanation:* This type is often used to cover debts that decrease over time, like a mortgage. As the mortgage balance declines, so does the insurance coverage.* **Increasing Term:** The death benefit increases over the policy term, often tied to an inflation index. Premiums also typically increase. *Explanation:* This helps maintain the purchasing power of the death benefit over time, accounting for inflation.* **Renewable Term:** Allows the policyholder to renew the policy at the end of the term without undergoing a new medical exam. *Explanation:* This offers continued coverage, but premiums will typically increase at each renewal based on the insured's attained age.* **Convertible Term:** Gives the policyholder the option to convert the term policy to a permanent life insurance policy (like whole life or universal life) within a specified timeframe and without a medical exam. *Explanation:* This provides flexibility to secure lifelong coverage later if needs or circumstances change.**2. By Premium Payment Frequency:*** **Level Premium:** Premiums remain the same throughout the policy term. *Explanation:* This offers predictable budgeting.* **Annually Renewable Term (ART):** The policy is renewed annually, and premiums increase each year based on the insured's attained age. *Explanation:* This is the purest form of term insurance, offering coverage for one year at a time.**3. By Special Features:*** **Return of Premium (ROP) Term:** If the insured outlives the policy term, all premiums paid are returned. *Explanation:* This offers a "money-back" feature, but premiums are typically higher than standard term insurance.It's important to note that some policies may combine features, such as a level premium, renewable, and convertible term policy. The specific classifications and options available can vary by insurance provider.