TERM LIFE INSURANCE

Term life insurance is a type of life insurance policy that provides coverage for a specific period, or "term," of time, typically ranging from 10 to 30 years. If the policyholder dies within that term, the beneficiaries receive a death benefit, which is a lump sum payment. If the policyholder outlives the term, the policy expires, and no benefit is paid out.

1. Fixed Term: Coverage lasts for a set period (e.g., 10, 20, or 30 years).
2. Affordable Premiums: Generally, term life insurance is less expensive than permanent life insurance (like whole life), making it a more affordable option.
3. Death Benefit: If the insured person dies within the term, the beneficiaries receive a tax-free death benefit.
4. No Cash Value: Unlike permanent life insurance policies, term life doesn't build any cash value over time—it’s purely focused on providing a death benefit.
5. Renewability & Convertibility: Some term policies can be renewed after the initial term expires, though premiums may increase with age. Some policies may also be convertible, meaning they can be switched to a permanent life policy without having to undergo a medical exam.

• Income Replacement: Term life is often used to replace lost income for a set period (e.g., until children are grown or a mortgage is paid off).
• Temporary Coverage Needs: It's ideal for people who need life insurance for a specific financial obligation, like paying off a mortgage or covering education costs.

In summary, term life insurance is a straightforward, cost-effective way to provide financial protection for a set period, but it doesn't offer lifelong coverage or accumulate any savings over time.