What Is Term Life Insurance?

Term life is the simplest and cheapest life insurance option out there. A term life plan has one function: to pay your beneficiaries a specified lump sum in the event of your death.

A term life plan provides you with life insurance coverage for pre-set period of time. It can be as short as 1 year, or as long as 10, 20, or even 30 years. You also have the option to purchase a term life plan that will cover you until you've reached a certain age — usually 65.

Protect Your Family's Future

A term life plan can be the most cost-effective way to protect your family's finances. It makes sure that if you can’t be around for your family, they'll still be provided for.

10-year, 20-year, or 30-year terms require a major review of your family's likely financial needs. What are your major debts? What are your financial obligations? How much will your dependents need if they could no longer depend on your income?

If you're considering term life insurance:

• Schedule routine "policy check-ups" with your insurance carriers.
• Don't forget that your life insurance plan is a binding legal agreement. Carefully read your documentation carefully to be sure you understand what you're purchasing.
• Comparison shop regularly. Look into identical term life products from a several carriers. Getting quotes from multiple agents is an easy way to do this. Remember, premiums and options can vary widely from one company to the next.

Term Life Advantages

• Premiums on term life policies are usually much lower than on any other kind of life insurance.
• Term life is a great way to get substantial low-cost life insurance coverage for up to thirty years.
• You'll be able to afford a higher level of coverage during the years when your family is most vulnerable financially.
• The money you save on premiums can be invested for your retirement.
• You may have a “conversion option,” which lets you turn a term policy into a permanent policy. 

Term Life Drawbacks

• Term Life plans typically don’t offer cash value accounts.
• Term Life premiums can increase over time.
• Even if you do have a conversion option, the adjusted premium may be too expensive to continue.

Want to find out more about your options? Get free quotes from professional life insurance agents. You can use our free online quote service to get matched with up to 5 agents.