Term Life: Term Life Insurance is one of the cheapest forms of Life insurance which provides death benefits to named beneficiaries. Term insurance is different from whole life, universal life, and variable life insurance in that is does not build up additional cash to borrow against. As an example, a whole life policy may cost $2,500 annually while a term life costs a measly $300 per year.
Term Life Insurance policies are for terms of one year, 7, and 10 years after which the insured may renew for a higher premium or discontinue or shop around for a different carrier. Term life policies are purely protection against unforeseen death events.
Many consumers prefer term life insurance to provide their families with the necessary security, and then use the extra money they would have spent into a variable or whole life policy to make their own select investments. In fact, these consumers are securing life insurance and using funds for investment purposes (college fund, IRA, second home, savings account), in a different way, a manner which suits their personal needs.