What is Term Life Insurance? A Comprehensive Guide
Term life insurance is a straightforward, cost-effective life insurance policy that provides coverage for a specified period or "term." It ensures financial protection for your beneficiaries in the event of your untimely death during the policy's term. Unlike whole life insurance, which lasts a lifetime and has a cash value component, term life insurance is more affordable and is designed to provide a death benefit without accumulating any cash value. This type of insurance is popular among those seeking financial security for their loved ones during critical financial years, such as while paying off a mortgage, raising children, or handling other financial obligations. It's especially useful for individuals looking to obtain significant coverage at an affordable cost. How Does Term Life Insurance Work? When you purchase a term life insurance policy, you agree to pay premiums for a specified term, which typically ranges from 10 to 30 years. If the policyholder passes...