Term Life Insurance is usually set in durations (terms) of 10, 15, or 20 years. During the term period, the insured is entitled to the full benefits of the insurance contract. This type of policy has been used for purposes of covering the replacement costs of large personal investments including:
- Paying off a mortgage for the primary insured during the length of the mortgage.
- Covering a child's college tuition costs.
- Paying off a vehicle or luxury item during the time payments are owed for that particular item.
- Paying funeral expenses, medical expenses in the event of an untimely death, hospitalization, and some longterm care expenses.