Define Term Life Insurance
"How does it work?"
“So how do you define term life insurance?" The name pretty much says it all….Term life insurance is known as temporary insurance, because it provides you with temporary coverage. It is really meant to cover an “unexpected death,” within a certain time period.
Define term life insurance-
The same as auto insurance??!!
Term life insurance could sort of be compared to having an auto insurance policy. "What!! You're comparing me to a car??" No, no... you're not a car... silly! :)
Here's an example, if you get in a car accident, your car insurance will pay for the damages. You don’t get any of your payments back at the end of the year.(Well.. not that I know of anyway). Let's say you decide to cancel your policy and let's just pretend you get in a car accident after that...well guess what?
Yes.. you guessed it. Your car insurance company won't pay for the damages.
They don't have to because your coverage either expired or you cancelled it. So the same goes with term life insurance, once your term expires you no longer have coverage, so it has to be renewed at the end of each term. So when you define term life insurance it really just provides “pure death protection.” Something that term will not offer you is lifetime coverage with a "locked in rate." And this is something that permanent life insurance provides. As I said above, with term you’re being covered more for an “unexpected death.” And this has to occur during the term in your policy. If you’re more interested in purchasing a policy for your whole natural life then you may want to check out permanent life insurance which will build cash value over time.
A simple example
Okay, so let’s say you are 30 years old and you purchase a 20 year term life insurance policy, which is a policy that expires after 20 years. After the 20 years, you’ll be 50 years old. Your contract expires by then… so if you don’t renew or convert your policy and you die then your beneficiaries won't receive the death benefit. Now, if you want to renew it after 20 years and “assuming” that you still qualify, your term premiums will be more expensive! (Also remember, you might need to have medical exams run -depending on the death benefit amount.) So you might need to qualify for the renewal. One of the main drawbacks to a term policy is that your premiums will increase with age. And this is because as you get older your risk of dying increases. As it does for all of us!
Affordable Life Insurance –
Low cost insurance with term
After the above example, you might think that term isn’t so great. It really has its benefits. But one important benefit of a term life insurance policy is that the premiums are very affordable. And this is something that everyone wants… affordable term life insurance quotes and a great policy, right? I know I do!It also gives you immediate coverage for a very small premium. So when all of your friends and family ask you to define term life insurance, you can sound very smart and say that it is is an affordable life insurance that provides immediate “temporary” protection with a large death benefit amount! :) Remember, it is best to speak with an agent to help you go over all your options, because there are so many! Contact an agent today to get a free online life insurance quote and find the best coverage for you and your family. Is term life insurance right for you? Read more at
“Before you get a cheap term life insurance quote,”
find out if it's right for you!
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