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Term life insurance is the most cost effective form of life insurance for temporary needs. This is one of the fundamentals of life insurance that's easy to understand.

A premium is paid to an insurance company in exchange for a death benefit. Term life insurance pays a death benefit if you die during the policy period. The policy period for term life insurance, which you choose, can be between 10 and 30 years. The years of coverage are available in 5 year increments, (for example, 15 and 20 years).

Term life insurance characterized by having:

•Low cost
•Financial protection for your family
•Coverage can last up to 30 years

Life Insurance Proceeds

The payment of insurance proceeds, which is called the death benefit, is paid when you die. Term life insurance death benefit is made available to you loved ones almost immediately after you die.
Term life insurance has a fixed death benefit. This means the amount of insurance will not decrease as you get older or if your health gets worse.
As long as the premiums are paid during the term of the policy, the death benefit payment is made when you die.
Term life insurance death benefit is:
•Guaranteed not to change
•Fixed for the life of the policy

Life Insurance Premiums

Term life insurance is designed to work by enabling a small life insurance premium to buy a large amount of cash. Term life insurance has a fixed premium which remains the same for the life of the policy.

The premiums for term life insurance will not increase as you get older. Term life insurance keeps the same premium amount even if your health has declined since you initially got your life insurance policy.

Term life insurance does not accumulate cash value, like a whole life insurance policy. Since the premiums for term life insurance do not build cash value, they are smaller and can buy more death benefit.

You can buy more term life insurance coverage with your dollars than any other type of insurance. 

•Premiums for term life insurance are:
•Smallest- compared to other types of life insurance
•Fixed during the policy term- do not change as you get older or if health declines
•Pure life insurance protection- they do not accumulate cash value