Life insurance is just that – it insures your life for a particular amount of money, and if you pass away, that amount is paid to a beneficiary. Sounds pretty simple, right?
The concept might be simple, but there are different types of life insurance that are available, based on your needs.
Previously, we discussed how whole life insurance works, which you can read here. Here, we’ll discuss one of the other main types of life insurance – term insurance. We’ll describe the basics of term insurance, the types of term insurance, what happens at the end of the term, and some frequently asked questions, to help answer the question “How does term life insurance work?”