Term Life Insurance
Term life provides death benefit protection for a specific period of time (typically 10, 15, 20 or 30 years). In addition, term life gives you the most inexpensive and affordable cost protection to meet your budget financially.
Term life insurance has no investment components or cash values. Therefore, you can't borrow or take a loan from a term policy, unlike other policy like a whole life or index universal life, etc.
Term life has a specific period of coverage and will expire when the term ends. Term policy can not be renew so if you still need life insurance, you'll need to get a new policy before term life expire to avoid any lapse in coverage.
Many term policies may include a terminal illness rider or Accelerated death benefit which allows a portion of the coverage to be taken out early for the insured’s use due to a diagnosis of being terminally ill.
Who is Term Life insurance for
If your dependent and loved ones depend on you financially, and don't have enough money saved then you certainly do need life insurance. A popular time to purchase a term life is upon having children and family as it's a better fit for younger people just in case something happens to the primary provider.
In general, term life policies are ideal for people who want a lot of coverage but do not want to pay a lot in premiums each month. Not to mention the fact that term insurance premiums get more expensive as one ages over the years.
Those who choose to carry term into their later years may end up paying premiums that are commensurate with the cost of some of the newer permanent products that are now available in the marketplace.
If you know you only need life insurance for temporary or a certain years only, then buying term will best suit your need until you are ready to convert to a better life policy.