What Does Term Life Insurance Not Cover?

Term Life can be issued for a period of 1, 5, 10, 15, 20, 25 or 30 years and provides a death benefit to the beneficiary if the insured passes away during the term of the policy. Death by suicide is usually excluded during the first two years of being insured, one year in some states. The policy expires at the end of the term and does not cover living after that point.

Most term life policies will also pay a portion of the death benefit in advance if the insured person is diagnosed with a terminal illness and has less than 12-24 months life expectancy.

New Living Benefit Term Life insurance policies also include no cost riders providing additional coverage that will accelerate up to 90% of the death benefit payment in case of Critical Illness (Cancer, Stroke, Heart Attack, Major Organ Transplant, etc.), Chronic Illness, Disability, Terminal Illness, or Death.

Funds from the new living death benefit can be used for any purpose, such as: hospital and medical bills, lost income, mortgage payments, household expenses, long term care, etc. Living Benefit Term Life policies are only available from approximately six life insurance carriers. Learn more about how a term life insurance policy works.