An Introduction to Term Life Insurance

Term life insurance or term assurance is the original and purest form of instant protection. Term insurance is also the most inexpensive way to buy a death benefit on a coverage amount per premium dollar basis. The word “term” is used as this type of life insurance provides coverage for a limited period of time; after which the insured can drop the policy or pay the premiums at an annual increasing price to continue the coverage. In case of death of the insured during the term, the death benefit is paid to the beneficiary.

Term life insurance plays an important role in proper financial planning. It is a pure death benefit since its primary use is to provide coverage of financial responsibilities for the insured. It provides flexibility to cover consumer debt, college education for dependents, affordability towards funeral costs and mortgages and convertibility without any proof of insurability or medical exam.