An Introduction to Term Life Insurance 

Term life insurance and permanent life insurance are the two main categories of products you may choose from while looking for life insurance. Plans for term life insurance cover you for a set amount of time, usually between one and thirty years. Term life insurance gives you a death benefit that is meant to help your dependents replace your income after you die. For instance, the cash may be used to cover bills like a mortgage, college tuition, or food.

In this article, we’ll give you an overview of the most important features and benefits of term life insurance. 

How Does It Work? 

Your beneficiary will get the death benefit if you die when your term life insurance policy is still in effect. The death benefit will not be paid out if you live beyond this period. Additionally, premiums are often non-refundable.

But what can you do if the policy term ends? One may be allowed to extend cover for another term, up to a certain age, if the term policy is renewable. If your term insurance is convertible, you may also be able to change it into a permanent life policy. Most conversions must take place within a certain time frame. If you decide to renew or buy a new policy after your term is over, you’ll probably have to pay higher premiums. 

What Is the Price of Term Life Insurance?

A term life insurance policy’s cost is mostly determined by the insured’s health and age at the start of the term. As you get older, it may become more difficult or costly to get new term coverage due to deteriorating health or rising age.

Additional Term Life Insurance Policy Options

There are both level and decreasing term life insurance policies available. With decreasing term life insurance, the death benefit decreases over time. The death benefit does not decrease with level-term policies, making it the preferred option for most. 

Life insurance helps secure your family’s cash flow. Consult your insurer about term life insurance.