What is term life insurance?

Term life insurance is one of several types of life insurance one can purchase. A term plan only covers a specific period of time, such as one year. So if the insured person dies within that period of time (the term of the plan), the insurance company will pay the pre-determined proceeds amount to the policy’s beneficiary. However, if the insured person lives for the entirety of that term, the insurance company keeps all of the payments made by the insured person and is not later obligated to make any payments.