What is Term Life Insurance?
Term Life insurance does not build cash value. It provides coverage for a limited period of time and usually has to be renewed on an annual basis and the insurer can decide to pay annually increasing premiums to continue the coverage or drop the policy. This insurance is for a term of 1 year.
If the insured person dies during the term, the death benefits will be paid to the beneficiary. It is the most inexpensive way to purchase a death benefit on the coverage amount.
Because Term Life is a pure death benefit, its use is to provide for covering financial responsibilities to the insured such as: to cover consumer debt, dependent care, college education for dependents, funeral costs and mortgages.
Category: Term Life
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