TERM LIFE INS, BELOW EXPLANATION:
The charateristics of term life insurance include temporary coverage, no cash value, and the policy expires if you outlive the term.
Term life insurance is temporary life insurance protection, usually for a period of 1-30 years. Many term life insurance policies are issued for 10, 15, 20, or 30 years.
Term life insurance is pure protection, you pay only for the life insurance, there is no cash value that builds up within the policy.
If you outlive the term of your policy, the life insurance coverage expires.
Term life insurance may allow an option for renewability, allowing you to renew your term life insurance policy without having to take a physical exam to qualify for the new policy.
Permanent life insurance may cost 2-3 times more than term life insurance.
AND LIFE INSURANCE EXPLANATION BELOW:
Insurance that guarantees a specific sum of money to a designated beneficiary upon the death of the insured or to the insured if he or she lives beyond a certain age.
life insurance
Method by which large groups of individuals equalize the burden of financial loss from death by distributing funds to the beneficiaries of those who die. Life insurance is most developed in wealthy countries, where it has become a major channel of saving and investing. There are three basic types of life-insurance contract. Term insurance is issued for a specified number of years; protection expires at the end of the period and there is no cash value remaining. Whole-life contracts run for the whole of the insured's life and also accumulate a cash value, which is paid when the contract matures or is surrendered; the cash value is less than the policy's face value. Endowment contracts run for a specified time period and pay their full face value at the end of the period.
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