Term Life Insurance

Term life insurance refers to a form of insurance where it is purely insurance protection and does not build any cash value.

Also in term life insurance, normally insurance is only purchased for a specific period of time. e.g. 1 year, 5 years and so on. Usually a death benefit is still paid to the beneficiary should the insured individual decease during the period for which the insurance is purchased.

So what is the difference. There is no real answer and you really should check with the agent proffering the insurance. The term insurance may not or may not cover things like debt and education for the beneficiaries. The key thing is that payout is only upon death of the insurer as opposed to other froms of insurance where payout is eventual. Premiums are usually lower since studies have shown that term insurance do not pay out always, whereas for other forms of insurance the payout is eventually given (assuming all premiums are paid and no fraud is involved and so on). Note that term insurance can be for life as well, as in you can get term life insurance quotes, it may simply that the term is for life or for a period that is as good as for life =) Just remember that there is no cash accrued, so read your life insurance quotes carefully.

Given that, term insurance may be an economic way to insure, so long as you are not viewing as an investmant or savings as well. Many companies actually practise term insurance for their staff, since for the time of there employment they can be insured and cash accrued makes no real sense since there is turnover.