What is term life insurance?

Maria Ferrante-Schepis
Financial Health
As the name suggests, term life insurance is meant to be held for a specific period of time (the “term”), usually 10, 20 or 30 years. You select the term and amount of coverage you want, based on things like your age, income and dependents. Term life insurance tends to be especially popular with younger people or couples with children who are starting out because it’s quite affordable (e.g. it is far less expensive than your auto or health insurance).
Another advantage to term insurance is that the premium–-that is, the amount you pay each month–-is guaranteed not to increase while the policy is in effect. Once the term is up, the monthly premium increases dramatically, since you’re older and face higher health risks. At that point, people either renew their term policy or upgrade to another type of policy, such as permanent life insurance

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.