There are many definitions when it comes to life insurance that people are unsure of and term is one of them. For the most basic of explanations term means a specific period of time that the insurance policy is good for. So if you have a thirty year term life insurance policy then the policy will pay for up to thirty years. After thirty years the policy is no longer valid and you would need to get another one. This is a common form of life insurance that most people will tend to overlook. This is sad because it is a great way to get life insurance without having to spend a lot of money. The 30 year term life insurance is only one of the many term coverage plans that can be drafted to meet the needs that you have.
For most, term life insurance is the best option. The reason for this is the fact that it is very inexpensive as far as the premiums are concerned. Many people can get as much as one hundred thousand dollars for about ten dollars a month for the entire term. The reason for this is that most insurance companies that are offering life insurance are doing so by investing the money that you pay to them. This will help them to pay out the amount of the policy should something happen to you. With the term life insurance policy the company is not investing as much as they would be and they are making a lot more money by protecting you for a specific period of time.
The time that you are insured can vary greatly with a term life insurance policy. This is why this type of life insurance is very popular. There are times when you believe that you will need life insurance coverage for only a short period of time. For the sake of this discussion we will use thirty years. Let's say that this is the amount of time that you are planning on working for a company. So you take out the policy for thirty years and if in that time something happens to you then your family would get the payout amount from the company. If nothing happens to you in that time then the policy expires and you are no longer covered.
This type of life insurance policy is very common for parents that wish to make sure their minor children will be cared for if something happens to them. They will take out a policy that will not expire until all of the children are adults. This ensures that if an accident occurs the children will be cared for and receive the payout amount as long as the term has not expired. Compare term life insurance quotes now.