What is covered under term life insurance

Term insurance gives you life cover over a pre-agreed period of time. If you die during this period, your policy pays out a lump sum. This type of cover is useful for providing financial security for your dependents.

What does term insurance cover?

Term insurance is a type of life insurance policy that provides coverage for a certain period of time, such as 30 years. If the insured dies during the time period specified in a term policy and the policy is active, a death benefit will be paid. Most term policies offer level premiums for the duration of the policy.

What are 4 types of term life insurance?

Term life is typically less expensive than a permanent whole life policy – but unlike permanent life insurance, term policies have no cash value, no payout after the term expires, and no value other than a death benefit.

Do you get anything out of term life insurance?

While term is often the cheapest form of life insurance, there are some negatives to buying coverage. The policy doesn't build cash value, has no surrender amount if you cancel, and, if you have to renew, your premium is adjusted based on your current age and health, which can mean much higher rates.