Term life insurance provides coverage at a fixed rate of payments for certain period of time. Depending on your needs, that period of time may be 5 years, 10 years, etc. If you die during the term of your insurance coverage, your beneficiaries will receive compensation in the form of death benefits. When your term expires, coverage at the same rate of premiums is no longer guaranteed.
Term life insurance is often the most affordable life insurance as it provides security for a specific number of years, as opposed to a lifetime. However, unlike whole life insurance, term life insurance does not provide a return of premium dollars if no claims are filed. Much like auto insurance, it is simply risk protection.
You may want to purchase term life insurance to:
- Provide maximum coverage at an affordable price.
- Provide security for a loss of income in your absence.
- Provide coverage for short-term debts and needs.
- Provide financial security during your family’s child-raising years.
- Provide long term protection to help your survivors pay off a mortgage, healthcare costs, or college education.