Term Life Insurance Explained
March 1, 2010 - 12:30 pm
Term life describes a type of life insurance policy that may be written for a set period of time. This coverage expires in a fixed period of time, normally in ten, 20 or even thirty year allotments. During the lifetime of the term coverage, the premium rate doesn’t vary. When it expires, the plan cannot be renewed however instead a new protection plan has to be written with a newer rate.
A Term life insurance policy accrues absolutely no cash worth it’s just risk insurance coverage. To compensate for this, the rates on these types of insurance policies are likely to be much lower than those of a whole life (non-expiring life insurance policy).