What is Term Life Insurance?

Generally considered the most economical way to obtain life coverage, term life insurance is very straightforward. A person contracts with an insurance company to insure his or her life for a limited time and for premiums that will remain the same for the duration of the contract.

Some policies are renewable with some adjustment in policy premiums so that no lapse in coverage occurs. When the life insurance reaches the end of the term, the insured can enter into another agreement with the insurance company or allow the policy to lapse. Understandably the older a person gets, the more the term life insurance premiums will cost.

Beginning Coverage Young is a Positive

Getting a life insurance quote for term life at a young age will result in much lower premiums than in advanced years. Generally, most term life insurance is no longer available after age 95, unless that age is reached during a covered term that began many years prior.

Economically a Good Choice

Compared to whole life, permanent life, universal life, or variable universal life; the money saved from a term life insurance policy can be deposited into an IRA, which is tax deferred and increases based on future investments. One advantage of term life insurance is the lower cost allows for investment in other ways to build up a portfolio for retirement and to offer some means of protection for beneficiaries.

Term life insurance is a good choice for young adults who don’t have a lot of money to spend on insurance, but who still need to offer their families protection in the event of an untimely death. The amount of benefits offered for the young individual are generally much higher than for an older individual.

Term Life for Future Planning

Premiums are based on the length of the term and the age of the insured at the time of the policy’s inception. Typical terms are 10, 20, and 30 years. It is entirely possible that an individual who regularly puts money into an IRA may not need life insurance coverage at the end of a 30-year term. A young insured can expect very good premium rates for a short term because the insurance provider is much less exposed.

Anyone looking for term life insurance info should get guidance from a reputable insurer to discuss which life insurance coverage types best suit their specific situation. Term life insurance premiums may be paid in lump sum per year or on a monthly basis depending on how the policy is set up.

My Insurance Expert will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn’t have to be difficult. With the right advisor you can give your family the protection they need and have peace of mind.

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