What kind of coverage is involved in term life insurance?

Term life insurance provides coverage for a specified period of time, such as 10, 20, or 30 years. If the insured person dies during the term, the beneficiaries will receive the death benefit. However, if the insured person outlives the term, the policy will expire and there will be no payout.

Term life insurance is typically less expensive than whole life insurance, which provides coverage for the insured person's entire life. However, term life insurance does not build up a cash value, which means that the insured person will not have access to any money from the policy while they are living.

Term life insurance can be a good option for people who need affordable coverage for a specific period of time, such as when they have young children or a mortgage. It can also be used as a supplement to whole life insurance.

Here are some of the key features of term life insurance:

* Coverage amount: The death benefit is the amount of money that will be paid to the beneficiaries if the insured person dies during the term.

* Term length: The term length is the period of time for which the policy will be in effect.

* Premium: The premium is the amount of money that the insured person will pay for the policy each year.

* Renewability: Some term life insurance policies can be renewed at the end of the term, but the premium will increase.

* Convertibility: Some term life insurance policies can be converted to whole life insurance policies, but there may be a fee for doing so.

It is important to compare different term life insurance policies before purchasing one to make sure that you are getting the best coverage for your needs. You should also consider working with an insurance agent who can help you understand the different options and choose the right policy for you.