What is Term Life Insurance?

Term life insurance is a type of life insurance policy that provides protection for a set period of years.

Term life is temporary life insurance usually with guaranteed level rates for a term of 10, 15, 20 or 30 years.

Some term life policies provide life insurance up to age 65, 70 or later, but the rate remains level only for the duration of your term.

If you outlive the term of your policy, the life insurance coverage expires. However, you can choose to renew your term life policy for a rate that increases annually. Or, you may be able to renew your term life insurance for another 10 year term depending on your policy.

If you pass away during the term of your policy the death benefit is paid to your beneficiary, subject to any exclusions in your life insurance policy.

The death benefit is usually paid free from any federal income taxes.

Your beneficiary may use the proceeds from your life insurance for any purpose.

Term life insurance is the cheapest life insurance which means you can afford to buy the most life insurance for your money.

The longer your term the higher your rate, so a 20 year term life policy will have a higher rate than a 10 or 15 years term policy.

Also, the higher the amount of life insurance, the higher your rate.

The cost of your term life insurance will depend on the insurance company, the type and amount of coverage, the length of term, and your own personal risk factors, which may include your age, gender, health, family health history, lifestyle, tobacco use, driving record, height-to-weight ratio, occupation, hobbies, etc.