The trust is given to your family or anyone else you choose as your beneficiary in the event that your death occurs during this time.
Although term life insurance can cost less than permanent life insurance, it has no investment value. It does not pay until the end of the term and has no other value apart from death benefits.
In essence, a term life policy refers to an agreement made between the person who holds the policy who is also known as the person who owns the policy as well as the insurance company. The owner has to pay a premium for certain time periods in exchange for the insurance company promise to pay a particular amount of cash in the event of death to a named beneficiary in the event that someone other person dies. This is referred to as the named beneficiary.
If you are unable to sustain your family’s needs and your family, it’s time to consider buying enough insurance coverage to meet their needs. There are a variety of methods to the calculation of how much. No matter what level of protection you select, it will almost certainly cost less than you anticipated.
This video will explain how term insurance works.