Term Life Insurance is a form of insurance policy called term life insurance provides coverage for a predetermined amount of time, typically between one and thirty years. It is a policy that only pays out to your beneficiaries if you pass away within the policy’s term. However, the policy expires without making any payments if you live past the term.
Term life insurance is usually utilized for providing coverage during the years when the policyholder’s financial commitments are the greatest, such as when the policyholder has dependents who rely on their income or when they have considerable debts, such as a mortgage.
Term Life Insurance can also be used to pay off a specific financial obligation, such as a company loan or a child’s college tuition.
ALSO READ: Level term Life Insurance: How It Works
Types of Term Life Insurance
There are many types of term life policies on the market, they are:
- Level term life insurance
- Annual renewable term life insurance
- Increasing term life insurance
- Decreasing term life insurance
- Return-of-premium term life insurance
- Convertible term life insurance
- Additional types of term life insurance
- Group life insurance
- No-medical-exam life insurance
- Mortgage protection insurance
- Short term life insurance
- Temporary life insurance
- Family income life insurance
- Corporate-owned life insurance