A bit of brief information about term life insurance Term Life Insurance, as its name suggests, provides temporary coverage for a specified period of time. Sometimes a very short time period.
Premiums generally remain level or increase throughout the specified term.
Policies do not build up cash value, so if the policy is surrendered, the policyholder does not receive any cash. These policies are designed to meet a specific need for a stated period of time. They are sometimes purchased to supplement permanent insurance. This type of coverage is useful for people with limited income and high short coverage needs. Initial premium rates for temporary coverage may be lower than those for permanent products because of the limited periods of protection and absence of cash value, but the premiums can escalate rapidly at each renewals, as the insured gets older or as the duration of time increases.