Term Life Insurance Quote

Term life insurance, which is also known as “pure” life insurance, is a type of death benefit that will pay the beneficiaries of the policy holder over a specified period of time. Once the initial term expires, the policy holder can either allow the term life insurance policy to lapse, renew it for another term or convert the policy to a more permanent coverage.

Typically, term life insurance is less expensive than a permanent whole life policy. Unlike permanent life insurance, though, term policies don’t have any cash value, no payout after the expiration of the term and no value other than the death benefit. In its simplest form, a term insurance policy is “level premium”, meaning that the monthly premium remains the same for the entire term of the policy. The policy holder pays a premium for a period of time – usually between 10 and 30 years. If the policy holder passes away during that time, a cash benefit is paid to the family or other named beneficiaries.

A term life insurance policy is a contract between the policy holder and the insurance company, in which the policy holder agrees to pay the premium for a specified term in return for a death benefit being paid to a beneficiary upon the insured’s death. This benefit is typically tax-free. When you apply for a term insurance policy, the insurance company will typically ask for a medical exam, to evaluate your health and assess how much of a risk it will be to insure you. Insurance company underwriters may also ask about your lifestyle, hobbies, occupation and other activities that could possibly be deemed to be risky to your health.

When you choose what term length you’d like your insurance policy to be, the first question that will be need to be answered is, “How long do I need coverage for? If you have children, the rule of thumb is typically to choose a term that is long enough for them to be out of the house and finished with college. You’ll then need to decide how much of a death benefit you want. That amount should be based on how much coverage is needed to care for your family’s needs if you were no longer in the picture. Lastly, you will name your beneficiaries. The benefit does not need to go to only one person, and can be spread between two or more people, if desired.