What is term life insurance?
Term life insurance is life insurance that provides coverage at a fixed cost for a certain period of time. After the term expires coverage is no longer in effect.
If the insured dies during the term of the policy, the face value (benefit) will be paid to the beneficiary.
Term insurance is the least expensive way to purchase a large amount of coverage for a specified “term” (typically 10, 20 or 30 year policies).
Term life insurance is the most “pure” type of life insurance policy. Different than whole life, universal life, or variable universal life.
Term insurance is not generally used for estate planning needs or charitable giving strategies but is used for pure income replacement needs for an individual.
Term insurance is used for such things as: family protection, consumer debt, dependent care, education for dependents, funeral costs, and mortgages.
MassQuotes recommends term because it’s much less expensive than other types of life insurance.