Term life insurance policy is a simple and affordable way to provide money to your loved ones when you die. It can help replace your income or pay off debts so that your family can continue the same lifestyle they're accustomed to.

Term life insurance policy is deemed to be the most common form of insurance. The scheme is designed for a fixed period of time and also provides death benefit. It is also known as temporary insurance as it covers a person against death for a limited period. The period of coverage could be till retirement or till the children are through college. The premiums will have to be paid till the end of the agreed period or the expiry of the policy. The insured person will not be entitled to any benefits at the end of the contract period. Claims, if any, will have to be preferred during the tenure of the policy.

Term coverage is simple. You pay a premium for a period of time, called “term,” ranging from one to thirty years. If you die during the currency of the policy, the sum that’s insured is paid to the designated persons called the beneficiaries. Term life insurance policy has a lower premium in the earlier years, making life coverage quite affordable. But, there is one negative attribute – it does not build cash value.

A term life insurance policy is very different as compared to a regular life insurance policy as it is for a specific period of time. After the term gets extinguished, such type of coverage can either be cancelled or renewed. The cancellation and renewal decision is the prerogative of the policyholder.

When planning for your family’s financial future it's important to keep in mind that it is possible to outlive your policy. If you're looking for permanent insurance that builds cash value, whole life coverage could well be the answer for you. Term life insurance does not build up any cash value. Its primary and only purpose is to provide for the financial responsibilities of the insured in an affordable manner.