A Cost Effective Choice
Jan 5, 2005
Contributor: joel randon
Term insurance is a simple form of life insurance. It covers the insured for the time period that he sets and for the amount he selects. It provides benefits at death only. Premiums don't accumulate a redeemable cash value, as they do in more costly, permanent insurance policies such as whole life and universal life.
Term insurance protection applies only for the number of years defined in the "term." If the insured survives that period, the life insurance company has no contractual obligation to pay any death benefit. Term insurance is a particularly good choice if you want to protect your family from a mortgage or other time-limited credit obligations.
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