Term Life Insurance
Life Insurance is often described as “Pure Protection”, Term Life Insurance provides a death benefit for a defined length of time (the “term”) such as 1, 5, 10, 15, 20 years or longer — the longer the term, the higher the cost will be. If the insured dies within the term of the contract — even on the very last day — the insurance company pays a death benefit to the beneficiary. In this type of life insurance, there is no cash value. The low premiums pay for the death benefit and provide some profit to the insurance company over time. Most larger insurance companies offer at least one type of term life insurance along with their cash value policies.
There is nothing inherently “bad” about Term Life Insurance, just as there is nothing inherently “bad” about any other type of life insurance. It is sometime described as “temporary” as a way to make it seem inferior to a cash value policy, which will probably be described as “permanent”.