A low-cost form of life insurance that stays in effect for a specific period of time. If the insured dies during the coverage period, the beneficiary will receives the death benefit. If the insured survives the specified time period, the policy expires and the obligations terminate. Term insurance works best when the coverage is needed for only a specific period of time or near-term cost is an overriding factor. In early years, term insurance costs are less then a Whole Life or other cash value policies.
Term insurance becomes increasingly expensive as the insured grows older.
There are a number of variations of term life insurance. Some term insurance policies provide a provision whereby a portion of the premium paid on the term life policy is credited towards the conversion of the policy into a permanent life insurance policy. A trust created through the will of its creator. The person making a will . A form of investment risk that the investor may buy or sell an investment at the wrong time.