Term Life Insurance policies provide temporary insurance protection for a specific term of years only. The term may be for four years, ten years or another stated period of years. The policy will only pay benefits if the insured should die “during” the term. If the insured lives beyond the period of coverage, the policy will expire with nothing due the policy owner.

 

Term Life Insurance provides protection, but with no cash value accumulation or refund. For this reason, normally term insurance has a lower premium per $1,000 protection than does permanent insurance. Essentially, the insured can purchase “peace of mind” for a limited period of time at very attractive, affordable rates.

 

ADVANTAGES OF TERM LIFE INSURANCE
Term insurance is best used under the following conditions:
• When an individual has a low present income.
• When an individual is beginning marriage and family responsibilities.
• When an individual has only temporary or limited needs or income.
• To protect insurability.
• To add additional insurance coverage to an existing form of permanent protection.
• To protect a home mortgage.