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Term Insurance: benefits of term insurance 

Term insurance provides insurance protection at a low cost for a specified period of time, say, 1 to 20 years. Term insurance is generally less expensive and less complicated type of life insurance.  In unfortunately the insured person dies within the term insurance period, the beneficiary will be paid a definite amount of money. The beneficiary is defined as the person(s) named in the policy to receive the life insurance proceeds upon the death of the insured.  If the insured person is still living at the end of the term, protection ceases. The term insurance may be renewed, but there is no accumulated money at the end of the period unless the insured person dies within the term period.  
 

Term insurance is best suited for people who are in need of temporary insurance protection. It is also suited for people who need a large amount of protection but have very limited funds for paying premiums.

The key benefits of term insurance are:

•     Insurance cover for a low cost

•     Possibility of converting term insurance to a permanent life insurance policy.

•     Term insurance supplements other coverage that do not provide adequately.

•     Death benefits are generally free of income tax.   

    For more information on term insurance please visit the sources hyperlinked from this website.