What Percentage of Term Policies Pay Out

Description: 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.

Keywords: Insurance, Finance, Business, Investments, Savings, Life Insurance, Personal Insurance, Lifestyle