Term Life Insurance

Term life insurance is coverage that lasts for a period of time chosen at purchase. This type of life insurance commonly covers 10-, 20- or even 30-year periods. If you die during the covered period, the policy will pay your beneficiaries the amount stated in the policy. If you don’t die during that time frame, no death benefit is paid.

Term life is popular because it offers higher death benefits at a lower cost than permanent life. It’s also a temporary solution. It is often used as a form of income replacement if you die during your working years.

Reasons you may want to consider term life insurance include:

• You want to make sure your child can go to college, even if you die.

• To pay off a mortgage that you don’t want to saddle your spouse with after your death.

• You can’t afford the higher premiums of permanent life insurance and still want coverage.

• To provide replacement income for your family, if you die.

Many term life policies are convertible to permanent policies; so choosing a company that offers good term and permanent policies is important. Decreasing term life policies have a death benefit that declines over time, often lined up with mortgages or large debts that are paid off over time.