What is Term Insurance?
Term life insurance, also known as temporary insurance, is a contract between you (the insured), and the insurance company. Term life insurance policies last for a definite period of time, such as 10, 20, or 30 years. In exchange for your premium payments, if you die during the term, the insurance company will pay a death benefit, usually tax-free to your beneficiaries. Once the term (the premium paying period) expires, the obligation of the insurance company to pay a death benefit ceases.