Term Life Insurance

Term life insurance provides pure life insurance in its most inexpensive form. Term life insurance provides coverage for a set period of time (the policy term) and generally pays a death benefit only if the insured dies during the policy term. The policy term typically ranges from 1 to 30 years, with 20 years being the most common term.
One of the biggest advantages of term life insurance is its lower initial cost in comparison to permanent life insurance. Term life insurance policies have no cash value accounts, policy loan provisions or other features typically found in permanent life insurance policies. With term life policies, you're generally just paying for the death benefit, which is the lump sum payment your beneficiaries will receive if you die during the term of the policy. With most permanent life policies, your premiums help fund the death benefit and can accumulate cash value.
Term life insurance is often a good choice for people in their family-formation years, especially if they're on a tight budget. It allows an individual to buy high levels of coverage when the need for protection is often greatest. Term life insurance is also a good option for covering needs that will disappear in time. For instance, if paying for a child's education is an applicant's major financial goal, it would be wise for the applicant to purchase a term life insurance policy that will cover the period of time necessary to reach that goal.