Term life insurance is a type of insurance that is provided through an agreement to pay a death benefit if the death of the insured takes place within a specific period of time or term. Most common term life insurance contracts come with coverage of 1 year, 5 years or 10 years.
How does term life insurance work? For example, the insured dies within the coverage of the insurance. The death benefit is immediately paid to his or her designated beneficiary. If the insured does not die within the term of the policy, he or she has the choice between forgoing coverage or getting additional coverage but this time with different payment terms and conditions.
Most people who get term life insurance are the elderly or the sick who anticipate within a certain period of time. While most insurance companies offer term life insurance, it is very important to compare term life insurance rates in order to get the policy that not only has affordable premiums, but will provide a substantial death benefit to the loved one who will be left behind.
Some insurance companies have websites with online computers for term life insurance. It is best to make use of these computation programs to be able to compare rates so that the individual could purchase the best policy for his or her needs.