MONEY OBEDIENCE

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A term life insurance policy is in force only during a limited period of time (unlike permanent life insurance policies such as whole life insurance and universal life insurance policies that can last your whole lifetime). The time period, or "term" during which the policy is active, can run anywhere from 1 year to 30 years. The term life insurance policy delivers exactly what it is supposed to deliver: insurance against the loss of life of somebody, on whose incomes others rely.

In most cases term life insurance is the most sensible life insurance policy one can buy. Other life insurance policies (like whole life and universal life insurance) add a savings component to the insurance premium and are thus no longer just an insurance to cover the loss of life of somebody on whose income others rely. That is, they act like a savings account, but are a very costly way to save. On the other hand, term life insurance policies are the most affordable kind of life insurance policies available.