Term Life Insurance
Term life is insurance that guarantees payment of a death benefit during a specified term. Once the term expires, the policyholder will either terminate, renew for another term or convert to permanent coverage. Term life insurance policies provide a stated benefit upon the death of the insured, provided that the death occurs within a specific period.
Term life policies have no value other than the guaranteed death benefit. There is no savings component as is found in a whole life insurance product. However, term life tends to be the least expensive form of life insurance. Many people chose to purchase Term Insurance and invest the savings separately.