Mortgage Lenders in Texas
|What is Life Insurance?|
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment.
|How Does Life Insurance Work?|
Term life insurance is coverage that lasts for a period of time chosen at purchase. This type of life insurance commonly covers 10-, 20- or even 30-year periods. If you die during the covered period, the policy will pay your beneficiaries the amount stated in the policy. If you don’t die during that time, no one gets paid.
Term life is popular because it offers large payouts at a lower cost than permanent life. It’s also a temporary solution. It exists for the same reason temporary tattoos and hair dyes do — sometimes a little while is long enough.