Term insurance provides pure death benefit protection with no cash accumulation.
- Coverage is typically for a fixed period of time and will cease at a given age.
- One-year renewable term insurance is the most basic type of term insurance and generally carries the lowest initial cost.
- Premiums increase periodically as the insured gets older.
- Features to look for include guaranteed renewability (regardless of insurability) and convertibiliy (to a cash value or other permanent life policy). These features can become crucial if the insured's health deteriorates.