3 things you need to know about term insurance

Term insurance is one of the most important types of insurance for anyone to have. Here are three things you need to know about it:

1. The definition of term insurance

Term insurance is a type of insurance that provides coverage for a specific period of time. The coverage period is typically 10, 20, or 30 years. If the insured dies during the coverage period, the insurer will pay a death benefit to the beneficiaries. If the insured survives the coverage period, the policy will expire and no death benefit will be paid.

2. Why you need term insurance

Most people need term insurance because it is an affordable way to get life insurance coverage. It is especially important for people who have young children or other dependents. If something happens to the breadwinner of the family, term insurance can provide financial security for the loved ones who are left behind.

3. What to look for in a term insurance policy

When you are shopping for a term insurance policy, there are a few things you should keep in mind. First, make sure you choose a policy with a death benefit that is large enough to provide for your loved ones. Second, be sure to select a policy with a coverage period that is long enough to cover you until your dependents are financially independent. Lastly, make sure the premium you pay is affordable.