Term life insurance, also referred to as pure life insurance, is a type of death benefit that provides money to the policyholder's beneficiaries for a predetermined amount of time.The holder of a term life insurance policy has three options after the term has ended: extending it for another term, making it permanent coverage, or letting the policy lapse.
The simplest and purest type of life insurance are term policies: Your family (or anyone else) will receive a cash benefit if you pass away during the time you pay premiums, which is typically between 10 and 30 years. If not, you designate it as your beneficiary.Although term life insurance is typically less expensive than permanent whole life insurance, term life insurance has no cash value, no payouts after the term expires, and no value other than the death benefit. To make things easier, the majority of term insurance policies have "level premiums"; this means that your monthly premium won't change throughout the policy's term.
