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
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.