Term life insurance is the first type of life insurance that was available for people to purchase. Term life insurance is just that, life insurance for a term or period of time. Most term life insurance policies are 30 years or shorter. The premium is paid monthly for 30 years and does not change. If something was to happen to somebody during the 30 year period, the beneficiary of the life insurance would be paid.

The catch on term life insurance is that at the end of the year, the policy can stay in effect but it is going to cost much more as a monthly premium because of the age that the insured would be at after the term policy was up. Most people get life insurance around 30 and after 30 years would be 60 years old. The life insurance would almost immediately double because of the age of the person. So, the term life insurance policy doesn’t really work out that well unless somebody plans on dying within the 30 years.

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