Term life is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Generally great for young families with children and usually is the least costly type of coverage.
Term insurance guarantees payment of a stated death benefit to the insured’s beneficiaries if the insured person dies during a specified term.
These policies have no value other than the guaranteed death benefit and feature no savings component as found in a whole insurance product.
Term life premiums are based on a person’s age, health, and life expectancy.