Money Matters: What is term life insurance?

Term life insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed when you reach the end of a specific period, which can be either 5, 10, 15, 20 or 30 years. The premium rates generally increase at each renewal date.

Term life insurance allows you to pay only for the protection you need and for the time (term) that your dependents need it. It's very affordable since only life insurance protection is provided. There is no cash value accumulation. The programs offered through AOPA are among the most reasonable for pilots.