A term life insurance policy is a type of life insurance plan that provide temporary coverage usually lasting for a policy term (duration) of up to thirty years.
However, there are several policy terms to choose from, including 10, 15, 20, 25, 30, 35, or 40 years, depending on your age.
The shorter the policy term, the lower your annual cost of life insurance, because you have a lower probability of dying during the shorter term.
If the insured person dies during the policy term, the death benefit is paid out by the insurer to the beneficiaries of the life insurance policy.
If the insured is alive when the policy term ends, the coverage expires with no pay out of any benefits.
Term life insurance offers the cheapest type of life insurance coverage for a duration of 30 years or less.
Learn more about
the meaning of a term policy.
