What is Life Insurance

A contract between an owner (often the insured person) and a life insurance company that guarantees the payment of a stated amount of money on the death of the insured

Term life insurance coverage is pure protection. Like car insurance, you select a coverage period and benefit amount. Simply put, if you die while your policy is in effect and all of the required premiums have been paid up to that point, your beneficiaries receive exactly the benefit amount you selected. It's simple and practical. You get exactly what you pay for.

Term life insurance is often considered to be the appropriate coverage for instances where estate creation is needed because it is designed for a specific period of need (i.e. the number of years left on a home mortgage or business loan, or until your children are through college and no longer dependent upon your income or assets). And, since term life insurance costs are so competitive, you can purchase the amount of protection required to help meet all of your specific goals.

A life insurance policy can be owned by the insured person or an individual, a company or a trust with an insurable interest in the insured person.  Insurable interest means there would be a financial loss by the owner in the event of the death of the insured person.