Term life insurance is the most widely known type and provides a death benefit for a fixed number of years – typically a 5, 10, 15, 20, 25 or 30 period– which you decide when you choose when you buy the policy. Premiums are paid for each year of the term. If you purchase level-premium insurance, which is common, you’ll pay the same rate each year. When the term is up, you stop paying premiums and you no longer have coverage. If you die at any point during the term, your beneficiaries receive a death benefit. If you die after the terms ends, your beneficiaries get nothing.
Term life insurance is generally the least expensive type of life insurance for the amount of coverage you get and it is the easiest type of life insurance to understand. For these reasons, it is also the best type of life insurance for most people.
A variation on basic term life insurance called convertible term insurance can be turned into a permanent whole or universal life insurance policy at any point during your policy term without having to requalify medically. Your policy might specify that you can only convert the policy up to a certain age, such as age 70.
If you would like to discuss your life insurance needs directly, feel free to contact us by phone or email. We'll be happy to assist you with any questions concerning how you can be better prepared and protected.