TERM LIFE INSURANCE: This is the original form of life insurance and is considered as a pure insurance product since it does not build any cash value. It is a policy of fixed duration of coverage. If the insured person dies within that duration the nominee gets the money or else the policy gets over without much benefit. There are no other benefits incurred on the amount. When the policy ends it is the decision of the policy owner to let the coverage period end or renew the term life insurance policy.
Its primary use is providing coverage of financial responsibilities, which may include consumer debt, dependent care, and college education for dependents, funeral costs and mortgages.
LIFE INSURANCE: It is insuring your life against an event that is sure to happen. It is a contract between the insurer and the policy owner. While insuring oneself a person pays premiums quarterly, half yearly or annually and on his demise, the nominee mentioned in the policy gets the whole amount of the policy.
If you want to secure the future of your family members after you, if you don't want them to beg or be dependent on others, then insuring yourself is the best way out of it. Not only this you can also take loans from your policy at times of need and then pay it back. It is also known as permanent life insurance and this policy can be used for wealth accumulation.
