Term Insurance
There are many different types of life insurance. However, even though there are many life products, we can break them down into two main categories. Term insurance, otherwise known as temporary insurance (since the nature of the product is of a temporary nature) is one of these two main categories. This type of life insurance best covers temporary needs, such as a mortgage, or providing protection for your children until a certain age, children’s education, or maintaining your families lifestyle, just in case something happens to you. All of these are temporary needs and after a while the need is no longer needed. This is what term insurance does best, is protect your families temporary needs in case something should happen to you. This is also the cheapest form of insurance and is very affordable, as your monthly premiums are only guaranteed for the duration of the term.
Different types of Terms
Term insurance comes in different terms, so that you can choose just how long you would like to lock your rate in for. The longer you want to lock the rate in for, the more expensive the insurance product becomes. The shortest term you can take is a 10 year term, otherwise known as a Term 10, this then increases in increments of 5 years all the way up to the maximum term of 40 years. Usually people take a max term of 30 years, and if they want premiums to be locked in for longer than that, they usually decide to take out a permanent life insurance policy instead.
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