Term insurance is a type of life insurance policy that provides coverage for a specific period, known as the term. If the insured person passes away during the term of the policy, the designated beneficiaries receive a death benefit.

Key Features:

• Duration: Term insurance offers coverage for a predetermined period, typically ranging from 5 to 30 years. It doesn't build cash value and expires at the end of the term.
• Death Benefit: If the insured person dies during the policy term, the beneficiaries receive the death benefit, which is the face value of the policy. This benefit is generally tax-free for the recipients.
• Affordability: Term insurance tends to be more affordable compared to other life insurance options like whole life or universal life due to its pure protection nature without cash value accumulation.
• Renewability and Convertibility: Some term policies offer the option to renew or convert the policy to a permanent life insurance policy without a medical exam.
• Coverage Amount: Policyholders can select the coverage amount based on their financial obligations, such as mortgages, debts, education expenses, or income replacement needs.
• Purpose: Term insurance is often used to provide financial security for dependents in case of the insured's untimely death, ensuring they can maintain their standard of living or cover expenses.

Benefits:

• Financial Protection: Term insurance provides a death benefit to beneficiaries, ensuring financial stability in the event of the insured's death during the term.
• Affordability: It offers a cost-effective way to secure substantial coverage compared to permanent life insurance policies.
• Flexibility: Policyholders can choose the term length and coverage amount based on their specific needs.

Term insurance is suitable for individuals seeking pure protection and temporary coverage for a specific period. It's often recommended for those looking to cover specific financial obligations or protect dependents during critical life stages.