Term life insurance provides life insurance coverage for certain period of time in other words you can say relevant term. After the define term, insured can either drop the life insurance policy or pay annually increasing premiums to continue the coverage. You need to mention the name of the beneficiary because in case of policy holder died during the mention term then benefit will be paid to the beneficiary.
Term insurance work in a similar way as other types of insurance and giving you full return if you up to date it in regular interval and not if you didn't fill the premiums regularly.
The simplest form of term life insurance is for a term of one year and other most common term life insurance policies are 10, 15, 20 and 30 years. You can fix the premium monthly, bimonthly or annually.
Premium paid each year is the same, and is based on the summed cost of each year's annual renewable term rates, with a time value of money adjustment made by the life insurance holder. Thus, the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.
