What is term insurance?
Term insurance is life insurance, but not for your entire life. It’s only for a limited “term” of time.Let’s say you have a term life policy for $300,000. That’s the face amount. The “term” is 20 years.You pay premiums faithfully every month for all those years. If you die on the last day of the 19th year… the last day of the policy… your beneficiary receives the entire face amount of $300,000.
If you die two days later than that… one day after the policy term was over… your beneficiary receives nothing. Zilch. Nada.You might say, “Wow, Bruce! Why would anyone want a policy like that?”Here are five reasons why term life insurance could be an important part of your life insurance solution: