What is Term Life Insurance?

Term life insurance is the most affordable and flexible life insurance plan you can find. Your life insurance coverage can last from 1 year up to 30 years.

If you need financial protection for your family, term life insurance is usually the best and least expensive choice available.

Term life insurance is a form of life insurance that provides protection for a specific number of years. If the insured person dies during that period of time the Beneficiary receives the death benefit.

The Beneficiary is the person the insured chooses to receive the death benefit of the life insurance policy.

The Death Benefit is the amount of coverage provided by the life insurance policy.

For example - A person buys a 10 year term life insurance policy with $150,000 of protection. If the insured person dies within the 10 year period, the beneficiary receives the $150,000 (face amount of the policy). If the insured survives the policy ends and the beneficiary receive nothing.

How does term life differ from whole life insurance?

Permanent or whole life insurance provides lifelong protection. As long as you pay your insurance premiums, the policy remains in effect. Term insurance provides protection for a specific number of years. Many permanent life insurance policies build cash value. Term life insurance does not build cash value.

What does term life insurance do for you and your family?

Why pay for life insurance protection that's only temporary? Because you never know what can happen. Whether it be an accident, or you develop some unexpected health condition. If you weren't around, would your family be able to pay the rent or keep the mortgage going? Do you already have enough saved for your children's college education? A term life insurance policy may guarantee that if the worst does happen to you, your loved ones will be financially secure for their future.

Many couples choose term life insurance, because it provides protection for both spouses at an affordable premium that fits almost every budget.

Term life insurance is considered "Pure Protection" because you are paying only for the life insurance protection. No cash value builds up within the policy.

Term life insurance can usually be purchased for a specific period of time – usually 5, 10, 15, 20 or 30 years.

What are conversion privileges?

Many life insurers offer conversion privileges. This means you may be able to covert your term insurance policy into a permanent life insurance policy. Usually, you will not be required to take a medical exam to qualify for conversion. The longer you wait to convert your policy, the higher your premiums will be on your new permanent life insurance policy.

Level term life insurance is the most popular type of term insurance purchased by consumers. Level term offers you premiums and coverage amounts that remain the same throughout the term of the life insurance policy.

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