Term Insurance Defined: When buying life insurance a person will want to consider various factors about their financial needs and about why they want insurance in the first place. What do you want to protect? What is an affordable premium? Are my needs flexible? What is the ideal amount of coverage? Do I only require temporary protection? By asking these questions, the type of policy that will fit your need becomes apparent. While there are many types of policies today, we will explore “Term” insurance. How substantial you policy should be is also determined by things like mortgages and how complex needs become. Small business owners, for example, may want a fixed rate payment to help with budgeting; where a young family may use coverage as an aid in paying tuition. To begin with, “term” insurance refers to a life insurance policy where the premium is locked in for a specific number of years. The term is the number of years . For example, a 10 year term