What is Term Life Insurance?
Term life insurance is very popular, and that is probably because most people can find high amounts of coverage at an affordable rate. That is because this is a temporary insurance contract, which will expire after a set time. An insurer will underwrite applicants, and only offer policies to those people that it believes will surive the policy. Common policy terms are 10, 20, or 30 years, though I have seen others.
In general, you can find cheaper term life insurance policies , than whole life insurance, because it does not have a cash value. You are simply paying an insurance premium when you write your check. Sometimes, insurance agents call term insurance, pure insurance, as opposed to whole or universal life insurance which can build up a cash value, but costs more.
Define Term Life Insurance
Again, you may find policies that seem to contain exceptions to these basic rules, but this is a general and simple definition of term life in contrast with permanent coverage.
Temporary Life Insurance Coverage for a span of time set out in the policy No Cash Value. A pure form of life insurance. Lower Premiums than other forms [...]
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