| Term life insurance is the simplest and often most | | | | death. Taking out term life insurance and renewing it |
| affordable form of life insurance. Term life insurance | | | | during the duration of your mortgage, for example, will |
| provides coverage for an agreed-upon period. The | | | | assure that your beneficiaries will be able to cover the |
| term of a policy can be 5, 10, 15, 20, or 30 years. | | | | debt if you die unexpectedly during the term of either |
| Premiums generally increase if you want to renew the | | | | the mortgage or the insurance. If you don't die and the |
| policy after the term expires. Even so, term life | | | | mortgage is eventually paid off, your need for |
| insurance is usually cheaper than other types of life | | | | insurance will decrease and you will have the option of |
| insurance, such as whole life. | | | | not renewing your policy. |
| The difference between term life and whole life is that | | | | Some term life policies are convertible to whole life or |
| with whole life, you are insured for the duration of | | | | permanent life. As you age, and the likelihood of your |
| years you are alive and you pay premiums for a | | | | death increases, the benefits of having whole life |
| longer time. Whole life will pay a death benefit whether | | | | rather than term life increase. In addition, many |
| you die at 25 or 95. Term life insurance pays a death | | | | insurance companies will allow you to convert |
| benefit only if you die during the term of the policy. For | | | | regardless of the state of your health. It makes sense |
| example, if you die the day after the term expires, no | | | | to choose this type of policy, because it will give you |
| death benefit is paid. Because it's less likely that you | | | | affordable coverage when you need it and |
| will die during the time window specified by term | | | | comprehensive coverage as you grow older. |
| insurance, the premiums are usually less expensive. | | | | Regardless of what type of insurance you're |
| Younger people often choose term life insurance | | | | interested in, you should do your homework and obtain |
| because they can get higher levels of coverage at a | | | | several quotes from reputable companies. In this way, |
| younger age. This is especially important if you want to | | | | you'll be able to make an informed purchasing decision. |
| be sure that your family is provided for in case of your | | | | |