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| What is Term Insurance?
Term Insurance it’s similar to life insurance. Term means for a specified amount of time. So putting it all together it’s a life insurance which is active for a predetermined time, in case the person who has the life insurance dies the family will get the money, if the life insurance reaches maturity date then the person won’t be insured no more so he has to renew it or find another one.
For example you sign up for a life insurance policy which covers you for 5 years, this is the term. In case something happens to you in those five years then the insurance company will pay the beneficiaries. If the 5 years pass and nothing happens then the coverage won’t be available so you have to renew it or find another one which suits your needs. Term insurances have an advantage cause they usually cost less then the ones which cover a whole life time. | | | | |
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