Term life insurance is a type of life insurance that only covers the possibility of death occurring within the time specified in the policy. When the insured dies during that time, the insurance company will pay the sum insured.
This coverage may be suitable for those with limited budgets, large protection needs, or temporary needs.
This insurance offers the following benefits:
- Guaranteed death benefit for a fixed period
- Fixed premium.
- No cash value.
- Coverage for a certain period of time (term), usually for a specified number of years or according to the specific age of the insured.
- Initial premiums tend to be lower but eventually go up.