As opposed to Whole Life Assurance, which provides insurance coverage until the day you die, no matter when that happens, Term life insurance or term assurance is life insurance which provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.
SmartMoney.com has a good review of Term Life Insurance vs Whole Life Insurance:
"FOR MOST PEOPLE, the right type of life insurance can be summed up in a single word: term. But before we explain why, it's important to understand the differences between the most common types of insurance available"
Read SmartMoney's explaination why Term Life Insurance is better here.
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