Exactley how does term life insurance work?
By regular life insurance, I assume you mean whole life, since it insures you until death. Both whole life and term life insurance are designed to protect a family against the financial burdens that accompany the premature death of a breadwinner. You pay a monthly or yearly premium with each. The difference is this: A term life policy is for a limited period of time—the term. It will pay a death benefit only in the event that you die during term covered by the policy. That term could be 10 years, 20 years, or 30 years. If you die the day after the policy ends, the insurance company does not pay a death benefit. Since very few people die during the term, the insurance companies do not pay may death benefits, so the cost of insurance is low. A whole life policy covers your for your entire life. If you die the day after you take out the policy, you are covered. If you die in 20 years, you’re covered. And if you die when you’re 80, you’re covered. In the mean time, the insurance company in
