What is Term life policies?

A term life policy offers you life insurance protection for a specific number of years, usually 1-30 years.

There are different types of term life insurance, including:

1. Level Term - rates and coverage remain level (the same) for the entire term of the policy.

2. Decreasing Term - Rates remain level, but the coverage amount decreases each year.

3. Annual Renewable - You renew your policy each year.

Here are the basics on How term Life Insurance Works:

Term life insurance offers life insurance protection for a specific number of years. It builds no cash value, you pay only for the life insurance. That's why term life is less expensive than permanent life insurance. So you can afford more protection for your loved ones.

Term life insurance lasts for a specific number of years, from 1-30 years. The most common term is 10 or 20 years.

Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.

Usually, term life costs less than permanent life insurance.

At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.

Term Life Insurance Has Three Standard Features:

Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.

Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.

Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).

For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.

Many young couples and families choose term life insurance because it offers the most coverage at the lowest cost.

In 2003, one life insurance study found 97% of the term life insurance polciies purchased were Level Term Life Insurance policies.

One way to shop and compare rates is to request free quotes online. Efinancial has been providing free life insurance quotes from leading insurers online since 2001.

You just fill out one form and get up to 12 Instant Quotes from top-rated insurance companies. To request your free quotes visit https://www.efinancial.com/smartquoteefc.aspx?source=389-707

I hope that helps! Best of luck to you.