YOU ASK:
What is the definition of Term Life Insurance?
WE ANSWER:
Term Life Insurance is a type of life insurance that provides coverage to the insured period for up to a specified length of time; hence, the word "term".
If the insured person dies within that term, the beneficiaries will receive the death benefit. However, once the term expires, there is no coverage for the insured person. Term life insurance is renewable but the premiums will be higher as the insured person increases in age.
The advantage of term life insurance is that it is considerably cheaper than whole life products. However, there is no cash value accumulated over the term, since this product is designed to only provide insurance protection and has no savings component.
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