Term Insurance
Term insurance is a type of life insurance that provides coverage for a specified period, known as the “term.” Key features include:
- Death Benefit: Pays a lump sum to beneficiaries if the insured passes away during the policy term.
- Lower Premiums: Generally, more affordable than permanent life insurance, offering higher coverage for lower premiums.
- No Cash Value: Unlike whole life insurance, it does not accumulate cash value or provide benefits upon survival at the end of the term.
Term insurance is ideal for those seeking financial protection for a specific timeframe, such as until mortgage payments are complete or children are financially independent.