As with all life insurance policies, you pay premiums on your policy every year. But with term life insurance you pay premiums only for the length of the term. When the term ends, your premiums end, and so does your coverage. That means, if you were to die before the end of the term, your beneficiaries would receive the death benefit.
Because term life insurance provides coverage for a set period, it is easy to understand and is often the most affordable option, making it one of the most popular types of life insurance.
Lower premiums give you the ability to meet your financial obligations today, while still protecting your family’s future tomorrow. So while you continue to save for college, pay your mortgage, take family vacations, and do all the other things families do, you can rest easy, knowing that should the unexpected occur – the mortgage, college and even funeral costs will be covered.
There are three components of term life insurance policy that you should know: