Term Life Insurance

Term insurance may be one of the simplest concepts in the insurance industry and is normally used when referring to life insurance.

Term life insurance policies are written to provide coverage for a set period of time. This time period usually ranges from one year to thirty years. Coverage will only be triggered in the event a death occurs during the term of the life insurance policy. After the term is up, the insurance no longer exists.

Term Life Insurance Quote

What is Term Life Insurance?

Term life insurance is similar to renting a home vs. purchasing it. Once the rental period (term) is up, the policyholder has no equity. Term life insurance policies build no cash value and therefore the coverage is relatively inexpensive as compared to permanent insurance policies. Many people purchase term insurance to insure for a specific event such as a mortgage, business buyout or children's school aged years.

Term insurance can be used as a way to afford some type of protection while saving for a permanent policy. Other people feel it's a cost effective way to protect them while still being able to keep their other investments.

Term Insurance Coverage Options

The following are a few things offered with most term policies.

• Level Premiums: Companies offer level premiums over the term of the policy meaning the premium can never be increased or decreased; it remains the same for the term of the contract.
• Convertible policies: Term policies may be converted into permanent insurance prior to the term expiring.
• Waiver of premium is one important rider usually offered with Term life insurance. If selected, the insurance company pays the premiums of the policy in the event the insured becomes disabled and can no longer pay the premiums.

That's a brief Term Life insurance overview. To compare term life insurance rates in your area, follow the link below. Term life insurance has never been as cheap as it is today.

Term Life Insurance Quote

There are a number of term life insurance quote sites online that will offer you instant quote comparisons. If you are like many people shopping for life insurance, you should look for advice from a professional insurance agent prior to making your buying decision. Educate yourself prior to making any life insurance buying decision.

Related:

• How much insurance coverage do you need? (life needs analysis)
• Five things you must know prior to buying life insurance.