What is Term Life Insurance?
Term life insurance is a specific type of life insurance, which has become very popular in recent years. Term life insurance provides protection for a specified period of time, typically 5, 10, 15, 20, 25 or 30 years (this is called the coverage term). The person to be insured selects the coverage term, and a death benefit is paid to the beneficiary if the insured dies within a specified period of time while the policy is still in force. Term life insurance works well for people who need coverage for a specific period of time; for example, when a child is born a parent may take out a 20 or 25 Year term life policy to ensure that in the event of their death, the child will be provided for through his or her college years.
