A term life insurance policy is most often purchased when someone needs the most life insurance protection to provide for a short term need of 30 years, or less.
Usually, life insurance benefits are needed for a fixed period of time, which may be for a term of 10, 15, 20 or 30 years; such as, an auto loan, home mortgage loan, or to college loan.
Term life insurance plans are offered by most life insurance companies and do not include any form of investment or cash value, it provides only "pure protection". That's one main reason why it costs a lot less than permanent life insurance.
Some reasons a person may choose to buy term life insurance include the following:
1. Your need for life insurance is temporary, for a period of 30 years or less.
2. You can't afford permanent life insurance.
3. It is a requirement of a loan or contract to purchase a term life insurance policy.
Here is a buying term life insurance policy checklist to help you understand what to consider when purchasing your term life insurance coverage.
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