Term Life Insurance

1. Coverage Period:- Term life insurance policies are typically available for terms of 10, 20, or 30 years, although some insurers offer terms as short as 5 years or as long as 40 years.
2. Premiums:- Generally, premiums are lower compared to permanent life insurance policies (such as whole life or universal life) because term insurance does not build cash value over time.
3. Death Benefit:- If the insured person dies during the term of the policy, the insurance company pays the death benefit (a lump sum of money) to the beneficiaries named in the policy.
4. Renewabilitity:- Some term policies are renewable at the end of the term without the need for a medical exam, but the premiums will typically increase as the insured person gets older.
5. Convertibility:-Many term policies offer the option to convert to a permanent life insurance policy (such as whole life or universal life) without a medical exam, providing more flexibility.
6. No Cash Value:- Unlike some permanent life insurance policies, term life insurance does not accumulate cash value, meaning you cannot borrow against it or surrender it for cash.

Term life insurance is often chosen by individuals who need life insurance coverage for a specific period, such as to cover a mortgage, provide for children until they become financially independent, or ensure income replacement during working years.

It’s important to carefully consider the term length, coverage amount (death benefit), and any riders or additional features offered when choosing a term life insurance policy. Comparing quotes from different insurance companies can help find the best coverage for your needs and budget.