What is Term Life Insurance?

Answer 1

Term life insurance is a temporary insurance plan that protects your family from substantial income loss in the event of your death.

Terms can last 10, 15, 20, 25, and 30 years.

They are the most inexpensive type of life insurance out there because they are the type of "pure" insurance. They do not contain cash value in it, therefore premiums are very low.

People who buys term insurance usually pick 20-30 year term. At the same time, they are investing systematically into a retirement account. In life, you don't need life insurance forever. You only need it to cover certain financial obligations such as kids, mortgages, and other debts. As you get older, your debts become lower and sooner or later you paid them all off. Also, if you've been investing systematically, your investments in your retirement account should be growing as well.

When your term expires, you probably won't need as much coverage as you do now or you probably won't even need it anymore.

Anyway, check out this blog about the difference between term insurance and cash value life insurance: http://obe231.blogspot.com

Answer 2

Life Insurance is a way of reducing your potential financial loss or hardship. It can help cover the cost of unexpected events such as theft, illness or property damage. Insurance can also provide your loved ones with a financial payment upon your death.www.buytermlife.com/Default.aspx http://www.buytermlife.com/

Answer 3

Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

Term life insurance is temporary, as it covers only a specific period of time, the relevant term. If the insured dies during the term, the death benefit will be paid to the beneficiary. Because the term expires the insurer often does not have to pay out making term insurance the most inexpensive way to purchase a substantial death benefit on a coverage per premium dollar basis.

The most common periods being 10, 15, 20, and 30 years. In this form, the premium paid each year is the same, and is the cost of each year's annual renewable term rates averaged over the term, with a time value of money adjustment made by the insurer. Thus the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.

Life insurance is best found by investing time, educating yourself and comparison shopping. InsureMe, http://www.insureme.com/landing.aspx?Refby=614505&Type=life is designed to be an invaluable resource for insurance shoppers like you in this process. Fill out our easy form, and you can get up to five insurance quotes from insurance agents who can help you make the best decision regarding your insurance. Policies start at $2 to $3 per month.

Ron @ InsureMe

Answer 4

Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

Term life insurance is temporary, as it covers only a specific period of time, the relevant term. If the insured dies during the term, the death benefit will be paid to the beneficiary. Because the term expires the insurer often does not have to pay out making term insurance the most inexpensive way to purchase a substantial death benefit on a coverage per premium dollar basis.

Answer 5

Term Life Insurance is exactly that, term life insurance. The life insurance protection only lasts for however the term agreed upon is. Say you just agreed to a 30 year term and you're 30 years old now; the life insurance only last the 30 years or when you turn 60 years old.

Answer 6

What is Term Life Insurance? Term life insurance provides life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value.

Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. Whereas, permanent, or whole life insurance, provides protection and cash value grows inside the policy.

The three key factors to be considered in term insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term).

Various life insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years (1, 5, 10, 15, 20, 25, or 30 years). The premium can remain level or increase.

A common type of term insurance is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time.

Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owner’s residence so the mortgage will be paid if the insured dies.

Guaranteed renewability is an important policy feature for any prospective owner or insured to consider because it allows the insured to acquire life insurance even if they become uninsurable.

Finally, the most common type of term insurance is level term life insurance. Level term provides protection for a specified period of time – such as 20 years. The policy benefit remains the same and the policy premiums remain the same for the entire term of the policy. This way, you are guaranteed, as long as you pay the premium you have a certain amount of coverage for a certain premium, and period of time.

To compare term life insurance quotes from top-rated insurers go to https://www.efinancial.com/smartquoteef.aspx?source=389-777

Answer 7

Term life insurance is less expensive than whole life or universal life. It provides a death benefit only, no cash values. The premiums are fixed for a specific number of years (10 years for 10 year term, 20 years for 20 year term and 30 years for 30 year term). Once this period of time ends the premium will increase at each renewal. There are new policies available that will return your premium after a certain number of years. Be sure to buy from an A or A+ company as you need to be sure they are able to pay years from now.

Answer 8

life insurance that is in effect for a term stated as a period of time. It could be one year or ten, twenty or thirty yaer term. At the end of the term you no longer have life insurance coverage.
There are term policies that have a conversion feature that would allow you to convert to a whole life or cash value product.
Whole life, universal life are the other arrangements. These cost more because you are building cash value within the policy that can help pay future premiums.

Answer 9

It is life insurance, will pay full amount of death claim. When you purchase, you agree to a certain "term" or period of time. For example, insurance for the term of 30 years would cost more than insurance for a term of 15 years. In either case, the insurance would be no longer in force once the "term" or agreed time frame passes.

Answer 10

It is a contract to pay if the Insured dies within a specified period, which is the Term. If the Insured doesn't die, the insurance has no value.

It is contrasted to Whole Life which has a Term portion plus an Investment portion. If you carry Whole Life long enough, it has a value you can borrow against, or eventually not pay premiums because the investment portion generates cash that can pay them.

The advantage to Term is that it has a lower premium. The advantage to Whole Life is that it builds up value, and is an investment. There are differing opinions about its value as an investment vis a vis other options, but it is an investment.