Term Life
Term life insurance is designed to provide life insurance protection for a specific period of time, such as 10, 20, or 30 years. If the insured person passes away while the policy is in force, the policy can provide a death benefit to the named beneficiaries. Because term insurance is focused on protection rather than cash-value accumulation, it is often one of the more affordable ways to obtain a larger amount of coverage.
Term life insurance may be especially useful when you have financial responsibilities that will decrease or end over time.
Common situations include:
- Young families — to help replace income and support a spouse or children if a parent dies unexpectedly
- Mortgage protection — to help provide funds that could be used toward the remaining mortgage balance
- Income replacement — to help a family continue paying everyday expenses after the loss of a primary income earner
- Children and education — to help provide money for childcare, school, or future education costs
- Debt protection — to help cover personal loans, credit cards, or other outstanding obligations
- Business owners — to help protect a business, fund a buy-sell arrangement, or provide key-person coverage
- Temporary high-coverage needs — for people who need a larger amount of protection during their highest earning and responsibility years
Term life insurance is not right for every situation, and the appropriate amount and length of coverage depend on your goals, budget, family responsibilities, and existing financial resources.
Insurance products are subject to eligibility, underwriting, policy terms, exclusions, and the claims-paying ability of the issuing insurance company.