Term Life Insurance Explained

Term life insurance policies are very popular because of their low cost and relatively long term of coverage. These policies provide a low cost way to get maximum insurance protection for a set period of time at a fixed cost. The premium rate you pay for term insurance is guaranteed to remain the same low amount for the duration of the term of coverage selected. Many insurance companies offer term insurance policies for a periods of 5, 10, 15, 20 and now even 30 years.

It is important to understand the terms of any insurance policy that you are considering before making a purchase. Term insurance policies build no cash value. They pay a benefit only if you die during the term of the policy coverage. If death occurs, the beneficiary collects the face amount (death benefit) of the policy income-tax free. Premium rates for renewals of these policies will normally increase at the end of the guaranteed policy period. Term insurance policies require that you furnish evidence of insurability at renewal to qualify for these rates.

If low dollar outlay is your main concern, and your insurance need is for a period of 30 years or less, term may have an advantage. If your need for coverage will last beyond 30 years, a Universal Life or Whole Life policy may be more effective. Should your life insurance needs change, many term policies carry a conversion privilege that will allow you to convert your term coverage to permanent Universal Life or a Whole Life policy without a medical examination. It is important to check the conversion privileges of the term policy before you make your purchase.

• On most policies the premium may increase after the guarantee period expires.
• Coverage may terminate at the end of the policy term or may become too expensive to continue.
• Generally, the policy doesn't offer cash value or paid-up insurance.

• Premiums are generally lower than those for permanent insurance
• You can afford higher coverage when the need for protection often is greatest.
• It's good for covering specific needs that will disappear in time, such as mortgages or family income needs for children.
• Term insurance is an effective way to get the most coverage at the lowest cost for up to 30 years.

COMPARE RATES AND SAVE! You're on your way to BIG life insurance savings with IntelliQuote! To compare rates from TOP life insurance carriers... CLICK HERE

Compare rates from top companies! Save money on your life insurance! Save time by applying for your chosen coverage online!