Are you interesting in buying a 5 year term life insurance policy?
If so, you may want to understand how it works.
A five year term insurance policy provides life insurance
protection for a period of 5 years. If you die during the 5 year term, your
beneficiary receives the death benefit. If you are alive after the 5 years, your life insurance
A five year term life insurance plan may offer the option of renewability. This means you may renew your policy for another 5 year period when it ends. But, your rate at renewal will be based on your age at that time.
If you pay for the renewal option when first buying your life insurance, you will not have to take a medical exam at renewal, you will be approved even if your health has changed.
NOTE: You may want to compare rates for 5 and 10 year term life coverage when buying your policy, as you may find the cost for a 10 year plan may not be that much more.
Example of 5 Year Term Life:
$250,000 five year term policy, annual premium of $300.
You pay $300 each year for a period of 5 years. If you die during the five-year term, the $250,000 death benefit is paid to your family (beneficiary).
But, if you outlive the five year term, the life insurance coverage expires.
With a 5 year level term life insurance policy you pay the same premium each year, and the amount of life insurance coverage remains the same.
Term life insurance offers temporary life insurance coverage for a term (duration) of 5, 10, 15, 20, 25 or 30 years.
If you think you may have a need for life insurance longer than 5 years, you may want to consider purchasing a 10-year term policy to be safe. You never know when your health may change. And, your financial responsibilities may increase over time, if you get married, start a family, or buy a home.
You can compare instant term life insurance rate quotes by choosing one of the options listed below.
Term Life Insurance Quotes
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