Affordable Life Insurance Protection for Your Family

Term Life Insurance Terms

Term Life Insurance Terms Explained

What is term life insurance and how does it work?

Term life is temporary life insurance protection for a certain period of time. Most term insurance policies offer coverage for a term of 10, 15, 20, 25 or 30 years.

Term coverage expires if you outlive the term of your policy. If you pass away during the term, your beneficiary receives the death benefit from your life insurance.


What are key terms related to a term life policy?

Here is a glossary of key terms for term life insurance:

Annually Renewable – A form of renewable term insurance that provides coverage for one year and allows the policy owner to renew the coverage each year, without evidence of insurability. 

Beneficiary – Person to whom the proceeds from the life insurance policy are payable when the insured person dies.

Coverage Amount – The amount of life insurance provided by the insurance policy.

Convertible Term – Term insurance that can be converted to permanent life insurance without a medical examination.

Death Benefit – The amount of money paid out to the beneficiary upon the death of the insured person.

Decreasing Term – Term insurance on which the face amount of life insurance coverage slowly decreases each year while the premiums remain level.

Insurance Company – The party to a life insurance contract that promises to pay the death benefit to the beneficiary upon the passing of the insured, in exchange for regular premium payments from the owner of the life insurance policy.

Insurance Company Ratings – The financial strength rating of an insurance company is an indication of the insurer’s ability to meet their financial obligations and pay their claims.

Insured – The party to a life insurance contract who’s life is covered by the insurance policy.

Level Term – Term coverage on which the face amount and premiums remain unchanged from the date the policy starts to the date the coverage expires.

Medical Examination – A medical check-up performed by a licensed paramedical professional. The medical exam is part of the application process and may be required by the insurance company depending on the amount of life insurance you need and your age. The health exam is paid for by the insurance company.

Payment Option – The payment choices available for the owner to pay for the policy. Payment options usually include monthly, quarterly, semi-annual or annual payments.

Premium – Periodic payment required to keep a life insurance policy In Force.

Suicide Clause – Most life insurance policies provide that if the insured commits suicide within a specific period, usually two years, after starting the life insurance policy, the insurance company’s liability will be limited to a return of premiums paid.

Term of Policy – Period for which the policy runs. In life insurance, this is the end of the term period for term insurance. Most term life policies provide coverage for a term of 1, 5, 10, 15, 20, 25 or 30 years.

Uninsurable Risk – Individual not acceptable for life insurance due to excessive risk.


How much does term life insurance cost?

The price you are charged for a term life policy will depend on the amount of life insurance provided and the length of term for your policy.

The larger the amount of coverage, the higher your premium. And, the longer the term, the more you will pay for your coverage.

In addition, your personal risk factors will affect how much you pay.

Risk factors include your age, gender, lifestyle, health, tobacco use, hobbies, occupation, height-to-weight ratio, driving record, and family health history, among other things.

Your risk factors are reviewed to help the insurance company determine your longevity – how long they expect you to live, and to keep on paying your premiums on your life insurance.

The longer your life expectancy, the lower the cost of insurance coverage.

You can find out how much your term life may cost by requesting a free quote.

Get a Free Term Life Insurance Quote


Where can I get term life insurance quotes? 

You have several options for comparing pricing on your term life coverage. 

  • Call a local life insurance agent.
  • Call life insurance companies direct for a quote.
  • Request your free quotes on the internet.


Why should I compare term life prices online?

There’s several good reasons to compare online pricing for your term insurance, including the following:


  • Quick & Easy – It takes less than 2 minutes.
  • No Hassles – There’s no sales pressure.
  • Convenient – Compare prices anytime of the day or night from the convenience of your home or office. 
  • Objective Comparisons – You can compare prices from over 70 of the leading insurance companies, not just a few that a local agent or broker may have access to.


Can I get term life insurance without having to take a health examination? 

Yes, there are no exam term life policies available. You can get an instant no exam life insurance quote online right now.

And, if you want, you can start your coverage right away.


Term Life Insurance Quotes


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Term Life Insurance without any Health Exam

Term Life Insurance Terms

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