The Original Term Life Term Life Insurance Network Term Life Insurance Click here for free quote 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. Term is useful for people with limited income and high short term insurance needs. Initial premium rates for term coverage may be lower than those for permanent insurance 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.