Term Life Insurance:
Term life insurance is often considered the cheapest way to purchase a death benefit. Coverage continues for a fixed period of time(term) during which the insured party regularly pays in premiums. The biggest drawback to term life insurance is that coverage expires when the policy runs through the entire term. This makes it possible to pay your premiums for the entire course of the term, but then never recover any benefit. To offset this drawback, many policies allow the insured party to extend his coverage when the term expires, although the premium is almost always increased when this happens.
An alternative to term life insurance is permanent life insurance (including whole life insurance) which does not expire after set period of time. Permanent life insurance actually came about because many consumers did not like facing the possibility that their insurance policy would never pay out, even after years of paying premiums into it.
