Overview
Life insurance is a type of insurance in which a designated person or group of people receives a sum of money in the event of the insured person’s death. Term life insurance is a limited-time life insurance policy in which the holder pays a fixed rate for a set term.
Term life insurance provides coverage during a set period. If the insurance holder dies under the coverage period, the death benefit will be paid to the designated person or people. When the term expires, the insured person is no longer covered at the same rate. At such a time, additional coverage and conditions must go into effect for the insurance holder to remain covered.
Like most life insurance policies, term life insurance owners are required to pay a recurring premium. During the term, this rate will remain fixed and guaranteed.
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