Term Life Insurance

"Term” Life is among the most commonly purchased due to the low premiums and high payout benefits. This type of life insurance is great for short term goal protection. This type of coverage is “rented” for a period of time or “term”, such as 10 years for example. During that time the premium is level for the length of the term and usually very low. At the end of the term you would be able to renew your policy with no medical questions in most cases but the premium would increase by a predetermined amount at the end of the term based on the age you are at that time. Many employers offer a term insurance policy to employees while they are working with the company however those term policies are not usually “portable” when switching jobs.

This form of insurance is very favorable to many people due to the large debt the average persons incurs during the “starting out” phases of ones life. Larger sums of cash are needed to cover heavier debts or expenses like homes, children’s education or credit debit for example if one should pass, but premiums have to be affordable. With term insurance, they are. A large sum of “temporary coverage” with low premiums, for a stipulated period of time makes term insurance attractive to the consumer and the insurer. Insurance companies offer very appealing rates for term insurance since younger people, generally speaking, are statistically healthier which presents less risk.

Term Life Insurance is “convertible” with many companies. This means that after your term is over, you would be able to convert the policy to a more permanent life insurance plan.