What is term insurance?
- Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified “term” of years.
- If the insured dies during the time period specified in a term policy and the policy is active, a death benefit will be paid.
- Many term policies offer level premiums for the duration of the policy.
- Other term policies offer decreasing or increasing benefits over time as well as the option to convert from term to permanent insurance.