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Term Life Insurance
What is Term Life Insurance?
Term life insurance provides your family with financial security in case of your unexpected death. Term insurance is offered for a pre-determined amount of time, usually between one and thirty years, and the benefit is only paid if the policy-holder dies while the policy is in effect. The beneficiary, the person who will receive the life insurance funds if necessary, is determined when the policy is purchased.
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There are a couple different types of term life insurance:
- Premium Term Life: Your coverage amount will remain level throughout the life of your policy, and your premiums will increase at periodic intervals.
- Increasing and Decreasing Term Life: Your coverage will increase or decrease over the life of your policy.
Many policies allow customers to renew their policies, or convert them into permanent policies. If you choose one of these options, your rates may increase depending on whether you are required to take a medical exam, and how much you have aged since you last applied for or renewed your policy.
Additional Term Life Insurance Options
Other term life insurance policies include:
Also, if you are still unclear on the differences between term life insurance and permanent life insurance, and would like to further understand the benefits of each, check out Term vs. Permanent Life Insurance page.
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Term Life Insurance Benefits
Term life insurance is useful on its own, but many people use it in conjunction with a whole life program while their financial contributions are vital to the survival of their families (mortgage, college tuition, etc.). For example, the bread winner in the family may choose to purchase term coverage in addition to full life coverage if his/her spouse is a homemaker.
Term life insurance is also considered the most affordable type of insurance because the premiums are lower than those for whole life policies.
Insurance Terms Available
Most agencies offer terms of one, five, ten, fifteen, twenty, or thirty years.
Term Policy Amounts
Most agencies offer term life insurance in amounts of $50,000, $100,000, $200,000, $500,000, $1,000,000, and $5,000,000.
Common Policy and Term Amounts Available
Many people who elect to purchase term life insurance buy their coverage in twenty year terms. It is important to keep in mind, however, that many agents will not renew term policies for people aged 80 and over. Though the one-year term used to be a popular product, many agencies no longer recommend it.
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Term Life Insure provides information at no cost concerning insurance products and services but is not an insurer or an agency. Please speak to your insurance agent for more information. Not all products are available in all states.
