Term Life Insurance is usually the most affordable type of coverage.
The term of the policy usually lasts between 1 and 30 years and pays only if a death occurs during the policy term.
Most term policies have no other benefit provisions.
Term life insurance is flexible coverage that offers your loved one’s financial protection at the time in your life when you need it the most.
When you have a young family or you are just starting out in your career.
Term policies are usually low-cost coverage and during the “term” your insurance premiums will remain constant.
If anything happens to you during the term, then a tax free lump sum payment is made to your beneficiary.
Term life insurance is straightforward and easy to understand, it can be converted in the future to a whole life or universal policy as your financial situation changes.
To qualify for term life insurance, you may have to take a medical exam, sometimes called a life insurance exam.
Medical exams are often required because the coverage amounts are high.
Because term life insurance is straightforward and doesn’t accumulate cash value, the premiums are relatively low (depending on your age and overall health) compared to whole life insurance.
The reason you can find lower premiums for term life insurance policies is that the coverage is only good for a specific period.
But term life insurance premiums depend on several factors.
For instance, they will vary depending on whether you are a smoker or non-smoker, your age, and any pre-existing health conditions you may have.