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Term Life Insurance is usually purchased to provide protection for a limited time to cover a temporary need and/or provide a large amount of coverage for a relatively low cost.

Life Insurance companies offer coverage for a period of time which may range from 5, 10,15, 20, 25, or 30 year policies.

These types of policies usually do not provide any type of cash value and end once it reaches a predetermined maturity date.

If the insured dies during the term of the coverage, then the policy’s death benefit is paid to the insured beneficiaries.

If the insured is still alive at the end of the term, then the coverage ends and the policy terminates; unless it is renewed or converted to a permanent whole life policy.

While this is temporary coverage; term life policies are very popular, affordable, and many individuals choose to buy them for various reasons.  For example, someone may want added protection when they purchase a new home, to cover their mortgage in case something happens before the house has been paid off, while others may want additional coverage during the time their children are still in school or college. 

Business owners also find these types of policies attractive to cover themselves or each partner over the life of the business.

Term Life policies have changed over the years, and many now offer a variety of different rider features such as: living benefits, return of premiums and disability premium waiver for a low additional cost.

When the term of the policy ends, your premium may increase when you renew, even if you initially selected a level premium term policy. This is because the lock-in rate for your premium is only good for the term of the original policy.

You may also have another option to convert your plan to a permanent life insurance policy after your term plan ends, even if your health has changed.

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