Term Life Insurance

Term Life Insurance
This type of policy provides protection for a specified period of time.

If you live beyond the term period you have selected, usually 10, 15, 20, or 30 years, no benefit is payable. As a rule, term policies offer a death benefit with no savings element or cash value. During the policy period, your life insurance premiums are guaranteed not to increase. If you pass away during that time period, your beneficiaries get a cash death benefit. If you live longer than the term period, you have the option to continue your life insurance coverage for an annual, renewable premium, which is generally much higher.

You can usually convert a term life insurance policy to a permanent life insurance policy without getting a new medical exam.

People use term policies for many purposes such as covering the period of a mortgage, or to ensure that their children have the funds to get through college. Once these events have passed they may not need as much insurance and will let their term policies expire.