Term Life Insurance
Term life insurance is a life insurance policy that provides coverage for a predetermined amount of time. Benefits of these types of policies are only gained if the policy owner passes away in the allotted time frame, typically 10, 15, 20, or 30 years.
Once a term life insurance policy is expired, it is up to the policy owner to decide whether to renew or not. Benefits are only received if the insured passes away during the coverage term. In this case, the beneficiary would receive the stated benefit of the policy. If the policy owner is still alive when the policy expires, the insured is not reimbursed for any of the payments made over the life of the policy. An advantage of term life insurance is that it is the cheapest and simplest of all life insurance policies.