Here are some of the benefits of term insurance:
What is Term Life Insurance? Term Life insurance is a policy that provides coverage for a certain period or a specified term of years. If the insured dies during that period specified, the nominated is issued a death benefit. It is usually best for short-term coverage due to a sudden increase in liabilities and commitments. Or if the insured is confident, that when the term expires, the insured will have no financial liabilities.
Firstly, term insurance is an affordable and inexpensive option for those who have immediate financial commitments,
Secondly, it provides you with more flexibility. It allows you to choose the term for which your liabilities need protection.
Thirdly, best for short-term needs. Term life insurance is the best solution for protecting commitments, that are time bound and have a fixed duration, like, mortgages, personal loans, business obligations and kids’ education.
There are a few disadvantages, like, when the term insurance expires, it will be more expensive to purchase another. You will have to apply for a new one, and at that point, you might not be medically able to get one. In addition, the policy lapses if you don’t pay the premiums on time.
Hope you have a clearer picture of What is Term Life Insurance? Comment if it was helpful by any mean.