term life in·sur·ance
Life insurance that pays a benefit in the event of the death of the insured during a specified term.
Why term life insurance?Term life insurance is basic, inexpensive and easy to understand. It gives the most coverage at the lowest premiums. That’s why term life insurance is the best choice for almost everyone.
Term life insurance is in affect for a specific period of time, or “term.” Typical policy terms are 10, 20 or 30 years. A term insurance policy is good for a specified period of time; that can be one year, 10 years, 20 years or up to 30 years. Typically you want life insurance for a given period of time. The time your children grow to maturity, the time you mortgage is paid, or until the time a loan is paid up. Pick a term that makes sense to you. If you die during the term, your beneficiaries get the policy face value (death benefit). If you die after the term expires, there’s no payout.
Term policies typically have maximum issue ages. The older you get, the more expensive coverage gets.
So, why term life insurance? Because you want to protect your loved ones in the event that you die.