The 10 Essentials of Term Life Insurance
Term life insurance provides coverage for a specific period of time, usually 10, 15, 20 or 30 years.
It pays a death benefit to your beneficiaries if you die during the term.
It does not build cash value or equity.
Premiums are generally lower than permanent life insurance since it only provides temporary coverage.
You can renew term policies after the term expires, though premiums increase with age.
Coverage amounts typically range from $100,000 to $1 million.
It's used to cover temporary needs like providing for young families or paying off a mortgage.
Policies require a medical exam to qualify in most cases.
Term is generally cheaper than permanent insurance when you're young.
It's a good option if you need life insurance coverage for a specific timeframe but not lifelong.