What Is Term Life Insurance?
Term life insurance is often called, “pure life insurance” because the policy protects your beneficiaries in the case you die prematurely. The policy provides a “term” coverage, and should you die within the term, your beneficiaries receive the payout. Term life insurance has no other value compared to whole life insurance.
Benefits of Term Life Insurance
Choice of policy length
Premium generally stays the same
Life insurance payout amount is guaranteed
Did You Know Whole Life Insurance Builds Cash Value?
In case of emergencies or should anything go wrong, you may be able to take out a loan against the policy. The policy may be able to allow you to withdraw or take out a loan against the policy, because a portion of each premium payment goes to a “savings account” component of the policy called “cash value."
Considering Term Life Insurance?
Choosing Term Life Insurance benefits is for those who:
Only need life insurance to replace your income over a certain period, such as the years you’re raising children or paying off your mortgage
Want the most affordable coverage
Think you might want permanent life insurance but can’t afford it. Most term life policies are convertible to permanent coverage. The deadline for conversion varies by policy.