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Everything About Term Life Insurance

What Is Term Life Insurance And Why Does It Matter

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The Basics of Term Life Insurance

Term life insurance is life insurance that has a limited period that the insured is covered by each policy. This is different from the other main type of life insurance coverage, which is called permanent life insurance. Permanent life insurance is intended to provide insurance from its start to the death of the insured. It lasts for the insured person's entire life.

Why People Choose Term Life Insurance

Many people choose to go with term insurance for their life insurance because it is low-cost and usually renewable. Term life insurance does not have cash value, and in some situations, it may be a convertible into a permanent life insurance plan.

Characteristics Of Term Life Insurance

If you get a term life insurance policy, there will be a stated benefit paid upon the death of the policy owner This stated benefit happens only if the death occurs within a stated amount of time.

Other characteristics of term life insurance are the factors that determine the premium. These factors include age, life expectancy, health, and even other things such as driving records.

The person holding the policy dies within the term, the insurance company pays the face value of the policy. The face value of the policy is determined when the insured first selects and gets approved for the policy. If the policy expires and the insured has not died, no payout is made by the insurance company. At this point, the policyholder might be able to renew for a new term. If they decided to do this their premiums will be based on the age when they renew.

Other Notes

The majority of term life policies never pay a death benefit, so insurance companies can offer them much more cheaply than whole life policies.

Often times insurance policies in this category are between 10 and 30 years long for the duration of the term.

Many people choose to take out a term life insurance policy when a life milestone occurs.

Some people also choose to get a convertible term life insurance policy, this is a policy that includes a rider.

When it comes to life insurance, having a team of professionals to help guide you through the decision and offer you the best and most affordable coverage is important. Please contact us to get a quote and or to ask any questions you have today.

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