Term life insurance, as the name suggests, is for a specific term. If you have a mortgage, are worried about children’s higher studies, or have dependents for a limited period, then term life insurance is the best option.
For example, Steve has children, and they are dependent on him; then, he can get a term life insurance for a specific period till they are grown up and start their careers.
Term insurance is cheaper as compared to permanent life insurance. In Permanent insurance, the insurance company pays a specific amount whenever the insured person passes away. In term insurance, the funds get forfeited if the need does not arise, which is the best scenario in life insurance. You can compare this insurance to health insurance, where the company pays you only when you are in need.
Which one should you get?
It depends upon your current financial obligations and the length of those obligations. Get in touch with us, we are here for any queries.