Term insurance is the basis of ALL life insurance coverage. It’s pure insurance, much like your auto or home insurance. You pay your premium, and if there’s a claim it’s paid. If there’s no claim, the carrier keeps the premium.
Short-term coverage is handled through term insurance: Income replacement, college funding, pay off a mortgage, business coverage like buy/sell and key man. Today’s term durations typically run 10, 15, 20, and 30 years. After the level premium period, premiums increase substantially.
Term does give you flexibility in locking in your insurability for potential conversion opportunities.
Because of the basic coverage of term, the premiums are usually the least expensive of all Life products.
With the changing marketplace there are growing enhancements to many term policies and other riders that provide a disability waiver of premium and child riders.