Term Life Insurance Explained

Often considered a temporary policy, term life insurance is only meant to cover you for a specific “term” or period of time during which the premiums may remain level. Coverage may continue after the level premium term but typically at higher premiums or with reduced face amounts. This can be anywhere from one year up to 30 years. If you were to die unexpectedly during that specific term, your beneficiaries will receive a set payout (known as the death benefit) as specified on your policy.

Being simple in concept, term life can help you affordably address the difficult question of how your family will financially manage if you were to pass away unexpectedly. Key benefits include:

• A fixed level premium that won’t increase
• A level death benefit that guarantees that the amount of coverage will stay the same (won’t decrease) for as long as you own the policy (the length of the term as long as the premiums are paid.)
• The ability to choose the term length that best meets your needs – typically 10,20, or 30 years
• Typically offers low initial costs with coverage with limits ranging anywhere from $5,000 to several million

- See more at: http://www.protective.com/learning-center/life-insurance/term-life-insurance/#sthash.e1GXNgMW.dpuf