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What Percentage of Term Policies Pay Out
Term life insurance policies provide a death benefit only if the policyholder passes away during the term. Industry data shows that a relatively small percentage, typically less than 2%, of term policies result in a payout. This low percentage is because many policyholders outlive the term or let their policies lapse. Despite the low payout rate, term insurance remains a cost-effective way to ensure financial security for beneficiaries during the policy term.

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What Percentage of Term Policies Pay Out

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