What Is Term Life Insurance

Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term.

types Of Term Life Insurance

You can choose from several different types of life insurance, each with its own features and benefits. There are no GOOD and BAD types of life insurance; rather, you should select the kind that best fits your needs and goals.

The following sections provide detailed descriptions of some of the most common types of life insurance.

  • Term Life Insurance Term life insurance covers you for a specific period of time, called a term, instead of for your entire life.
  • Common terms are 1, 5, 10, 20, and 30 years.
  • This type of life insurance pays death benefits only if you die during the period of coverage, and does not accumulate cash value.
  • People often purchase term life insurance to cover shorterterm debts like a mortgage or car loan.
  • While term life premiums are usually lower than permanent life premiums, they increase as you get older.
  • Term life can include the option to convert to permanent life insurance in the future.

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