Term life insurance
Term life insurance or term assurance is life insurance that provides coverage for some sum of money during given period of time. After the term stated in original contract will expire - the sum of money paid to insurance company need to be renegotiated and will often increase. Term insurance is the cheapest way of buying live insurance.
Term life insurance is the original form of life insurance and is different to permanent insurance because its rates wont go up, and there is fixed term contract which will end in future. Permanent life insurances contract can be until death of insured person but the rates will slowly go up every some period of time.
Because term life insurance is only death insurance, it is used to cover the mortgages reliability (guarantee that bank will receive their money), payment to the families (upon death of insured person his family will usually receive repayment for funeral cost and in some cases will get some money), repayment of debts.
The simplest form of term life insurance is contract for one year. The death benefit will be paid if insured will die. If he will not die during this year there will be no benefit paid off and new contract will be created.