What Does Term Life Insurance Mean?

Unlike the permanent life insurance, which provides its insured a lifelong coverage (which extends until the insured becomes 100 years old or he or she dies), the term life insurance protects the policy owner only for a limited period of time. The duration limit of the insurance contract depends on personal circumstances and premiums made to the insurance product.

However, in case a term life insurance expires, the policy owner may choose to prolong the insurance contract (so the coverage period as well), or he or she can decide in favour of both the policy and the coverage provided by it to end.

Term Life Insurance Explained

Term life insurance provides a set benefit in case the policy owner dies, but just in case the death happens before the end of a specific time limit.

One should know though, that term life insurances do not secure any returns besides the above-mentioned benefit compared to permanent life insurance contracts. So unlike the latter option, for term life insurances there is no savings element for policy owners to accumulate some money for the future.