Term life insurance is temporary life insurance that provides a lump sum tax-free benefit to beneficiaries on the death of the life insured. Premiums are guaranteed but will increase at renewal, such as every ten years.
Term life insurance is inexpensive. This is especially attractive to younger investors who have a smaller net worth. Term life insurance may be convertible to a permanent policy without insurability. Term insurance provides no retirement benefits or cash value later on. Premiums rise with age and may eventually become unaffordable. Term Insurance can be the best product for the short term needs.