What is a Term Life Insurance Policy?

What is term life insurance coverage and how does term life work?

A term life policy offers you temporary life insurance protection for a set number of years.

Most term life plans offer coverage for a period of 10, 15, 20 or 30 years.

If you die during the term of your term life policy, your beneficiary receives the death benefit.

If you outlive the term of your term life policy, your life insurance coverage ends.

Term life is the lowest cost life insurance because it is temporary, and does not build up any cash value inside the policy.

Remember, you may be able to purchase a new term life insurance policy when your first plan expires. However, your new rate will be based on your age and health at that time, as well as, the amount of life insurance and duration of the term.

You can also own more than one life insurance policy. You may choose to buy term life insurance for your short term needs of 30 years or less, and buy a whole life insurance policy for your lifetime life insurance needs.