Features of term life insurance:
- Lowest premiums of all life insurance types. Ideal for families on a limited budget.
- Insurance coverage for a limited period of time. Designed to meet temporary insurance needs, such as mortgage coverage, family planning, debt protection, etc.
- People who are in good health and live a healthy lifestyle may qualify for lower premiums (preferred rates).
Major uses of term life insurance:
- Provide a lump sum of money for family to continue living a familiar lifestyle.
- Pay down the mortgage or other loans if a spouse dies.
- Buy-Sell agreements for business partners. Partners can use term life insurance to buy out the remaining shares of a business in the event of other’s death.
- Final expenses: these can include funeral costs, court expenses related to probating your will, and taxes.