Term life insurance is arguable the simplest and most cost-effective form of life insurance that is available. The nature of these policies allows for a high amount of death benefit with a low initial cost. The only "investment" required is the monthly premium, unlike permanent policies which require the holders to invest much larger amounts into the policies investment vehicle. Ideal candidates for term insurance are young, growing families or businesses that have a definite need for insurance protection but do not have the means to build a large nest egg fast.

Some key highlights to term life insurance are as follows (this is not an exhaustive list):

- Term policies provide affordable coverage for a specified period of time, meaning the coverage will not decrease and the premiums will not increase over the term of the policy.

- Death benefits are tax-free to beneficiaries.

- When a sufficient cash reserve or savings does not exist, term policies are an affordable alternative to cover final expenses, tuition, mortgages, bills, and other debt.

As with everything, there are elements to consider when shopping for term life insurance:

- If the policy holder wishes to extend the policy at the end of its term, the premiums may increase.

- Term policies do not generate cash or loan values, as they do not include a savings element within the policy.

All in all, term life insurance is a strong and reliable option to consider when planning for the unexpected.