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Term life insurance is a low-cost form of life insurance that covers the insured for only a certain period of time (the term), not for his entire life. If the insured dies during the coverage period, the beneficiary receives the death benefit. If the insured survives the time period, the policy expires and no benefit is paid. Term life insurance is best when coverage is only needed for a certain period of time or the short-term cost is the most important factor. In early years, term life insurance costs significantly less than whole life or other types of policies. It becomes increasingly expensive as the insured grows older.
Based on a "risk profile" created by the insurance company, you will be offered an insurance "premium" (monthly or yearly cost) for the amount of life insurance coverage you request. This risk profile takes into consideration a number of factors (including your age, weight, gender, personal health history, family health history, smoking/drinking habits, where you live, and various other aspects about your life like your marital status). Like other forms of insurance, saving money on Life Insurance is really just about shopping around for the best quote (since different companies have different opinions on risk profiles).
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