Life Insurance: What is a Term?

A term is the length of coverage offered by a life insurance policy.

Term life insurance is temporary protection that offers coverage for a set period of time.

Terms available for term life coverage usually include 5, 10, 15, 20, 25, or 30 years as options for life insurance.

With term insurance, if you pass away during the term of your policy, the death benefit is paid to your beneficiary.

And, if you outlive the duration of your policy term, the coverage expires with no payout on your policy.

The shorter the term of your coverage, the lower your annual cost of life insurance.