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Learn about Term Life Insurance

What is term life insurance?

It’s a type of temporary life insurance coverage that offers protection for a specific period of time.

How long does it offer protection?

Usually, you can choose a policy with a term of 10, 15, 20, or 30 years.

How does it work?

Term life insurance provides protection for the term or duration of your life insurance policy. If you die during the term of the policy, your beneficiary receives the proceeds from your life insurance policy.

Usually, your life insurance proceeds are paid free from any federal income tax, if the beneficiary is an individual.

If you are alive after the term of your policy, your term insurance coverage expires.

Some term life plans offer you an option of renewability, where you can renew your term policy by a certain date, without having to take a physical exam to qualify.

The rate charged for a renewal of your term life policy will depend on your age at renewal.

Term life insurance usually costs less than permanent life insurance that offers lifetime coverage and builds cash value inside the policy.

Many young couples choose term insurance to provide 30 years of protection to pay off their mortgage loan and/or provide funds for their children to go to college if one of the parents pass away.

Term life is not an investment, there is no cash value inside the policy, it is pure life insurance protection.

Term life insurance comes in several different types of plans, including level term, decreasing term, no exam term, and renewable term life insurance.

Resources for Term Life Insurance:

Insurance Information Institute – Provides articles, tips, videos and helpful information teaching consumers about all types of insurance.

AM Best Company – Provides information about financial strength ratings of insurance companies.

Term Life Online – Provides articles, reviews, and information about different types of term life insurance.

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