Term insurance is a type of life insurance that provides coverage for a specified period or term. It is designed to provide a financial safety net for your beneficiaries in case of your untimely death during the policy term. Unlike permanent life insurance policies (such as whole life or universal life), term insurance does not accumulate cash value and is focused solely on providing a death benefit.

Here are some key features of term insurance:

• Policy Term: Term insurance policies are typically available for specific terms, such as 10, 20, or 30 years. You choose the term based on your coverage needs and financial goals. If you pass away during the policy term, your beneficiaries receive the death benefit.
• Death Benefit: The death benefit is the amount of money that is paid out to your beneficiaries upon your death. It is typically a tax-free lump sum payment and can be used to cover expenses such as funeral costs, debts, mortgage payments, education expenses, and ongoing living expenses.
• Premiums: Term insurance generally has lower premiums compared to permanent life insurance policies. Premiums are determined based on various factors such as your age, health, lifestyle, and the length of the policy term. Premiums for term insurance policies are typically fixed for the duration of the term.
• No Cash Value: Unlike some permanent life insurance policies, term insurance does not accumulate cash value over time. If you outlive the policy term, the coverage ends, and you do not receive any return on the premiums paid.
• Convertibility: Some term insurance policies offer a conversion option, which allows you to convert the policy into a permanent life insurance policy without undergoing additional medical underwriting. This can be beneficial if your needs change and you want to secure lifelong coverage.
• Renewability: Some term insurance policies are renewable, which means you have the option to renew the policy for another term without undergoing medical underwriting. However, the premium for the renewed policy is typically higher due to your increased age.
• Term insurance is often chosen to provide financial protection during specific life stages when responsibilities and liabilities are high, such as when you have dependents, outstanding debts, or mortgage obligations. It can be an affordable way to ensure your loved ones are financially secure if something happens to you.