Term life insurance policies are typically less expensive than whole life or universal life insurance coverage. Unlike those policies, which are designed to remain in force for your entire lifetime as long as premium payments are made, term insurance is coverage that is only available for a set policy term – a predefined number of years. When you buy term insurance, you are essentially renting life insurance coverage for a short time period (up to 30 years.)
Term life policies do not have a built-in cash value account like permanent life coverage does. Instead, your entire premium payment goes to pay for the cost of insurance. Because pricing is straightforward and limited, these types of policies are generally affordable at almost any age. That’s especially true if you are in good health, and can qualify for “preferred” or “super preferred” pricing tiers.