Term Life Insurance

Written by Stephanie Dula
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Term life insurance can be purchased from many companies to provide protection should the policyholder die during the term of coverage. For those who need coverage primarily for a certain time period, term life insurance is an affordable alternative to permanent, or whole life insurance. There are a variety of scenarios for which term life insurance coverage can be an appropriate option.

Uses for Term Life Insurance

For a young family who cannot afford traditional permanent insurance, a term policy may be a solution that allows for immediate coverage. Should either parent die prematurely (during the specified term), the policy will pay a benefit to provide for the rest of the family. Such an insurance policy can act as a short-term solution to a family's immediate insurance needs.

For a parent who has children attending college, a term policy can serve as life insurance until the children have graduated and no longer require excessive tuition payments. This policy will ensure that the children will be able to complete their education should a fatal accident or illness befall their financial provider. Term life insurance policies may not build up savings the way permanent policies do, but they are affordable and useful in certain situations.

These life insurance policies are available in different term lengths, from one year to up to 30 years of coverage. Before buying a life insurance policy of any kind, it's important to define the desired length of time to have to keep paying premiums. If immediate coverage is needed for a certain amount of years, a term policy can prove invaluable and provide peace of mind for the present.

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