What is Term Life Insurance?
Term Life Insurance is a type of life insurance policy that covers the policyholder for a specific amount of time. Terms typically range from 10 to 30 years providing level term insurance. Among the most popular life insurance products available, term life policies tend to be more affordable. They typically provide an amount of coverage for much less than permanent types of life insurance.
How Does Term Life Insurance Work?
Customizable Coverage
Flexible Term Lengths
Affordable Rates
Depending on the type of policy, term life can offer fixed premiums for the entire term or life insurance on level terms. The death benefits can be fixed as well. Because it’s an affordable life insurance product and the payments can stay the same, term life insurance policies are popular with young people just starting out, families and people who want protection for a specific period of time
Term life insurance doesn’t accrue cash value like permanent life insurance products, but with many term policies, beneficiaries do receive the full-face amount.
For example: if a policy’s face amount is $100,000, the beneficiary receives the full amount, pure and simple. Even better, the benefits paid on a term policy are tax free, according to current tax laws.