Term Life Insurance

The purpose of term insurance is to offer coverage for a specified period where there will be a great financial loss in the event of the death of the insured. For example, term life insurance could protect an insured’s family for a term period that would last until children have grown up and are on their own or until the insured’s investments/retirement accounts have grown to enough to provide for any financial loss due to the death of the insured. So, obviously, if the insured dies during the specified period for the term policy, a death benefit will be paid to the beneficiary. If the term period ends and the insured has not passed away, the policy owner can either cancel the policy or continue the coverage at a higher rate based off the premium schedule provided in the policy documents by the insurer. This is usually the most cost-effective way to purchase a substantial amount of coverage to provide for your family in the event of your death.