A major factor of this form of coverage is that is lasts for only a period of 5-30 years, depending on how long you want to remain insured, and after those years have passed; it expires and becomes in-validated unless you choose to renew it again.Also, permanent (whole) life insurance coverage covers you for your whole entire life, unlike a term life policy, which means that it will never expire as long as you make your payments every month.
Also, in regards to the main title, “term life insurance definition“, this is the only form of coverage that solely offers a death benefit and not much else, which means that your family will be paid a specified amount of financial benefits once you have died. Nevertheless, you can only hope to die during the policy’s lifetime, because if you die after it has expired, your family will not be paid the death benefits of your policy.
Because this style of insurance protection comes without cash value benefits and no permanent protection, it is offered at the lowest cost compared to those other forms of life insurance, namely whole life and universal life policies. By the way, your monthly premiums will cost a lot less as a result of the lack of certain benefits, but once you renew them again, they may go up on you since you will be much older at the time of renewal.
Nevertheless, the unfortunate thing about the term life insurance definition is that you will not see any financial blessings with it while you’re still alive! Because term life coverage offers a death benefit only, you will not be benefiting from like your family will, since they will be the ones who receive the death benefits.
One last thing to consider is that if you die even a few minutes after your policy expires, your beneficiaries will not receive the death benefits owed to them, but if you opted for the “guaranteed renewal” choice before you died, your family will receive the benefits as the guaranteed choice auto-renews your policy whenever it expires.