Term life insurance provides protection for a specific period of
time, or term. It is most often sold in 10, 15, 20 and 30 year terms.
The premium stays the same throughout the term. If the
insured person dies during this period, the beneficiaries receive the
proceeds income tax free.
At the end of each term, the insured may renew the policy (generally at a higher cost).
Term life insurance is often the most affordable coverage because it
offers protection for a specific number of years. You may want to
purchase a term life insurance policy to:
- Get valuable coverage at an affordable price
- Help cover specific financial responsibilities like a mortgage or
- Guaranteed level death benefit
- Guaranteed level premiums