Term life insurance is the simplest form of life insurance protection. It is also the cheapest. It covers you for a specific term period (hence the name ‘term’ life insurance). It has a guaranteed price that will not change during the guaranteed term.
So, if you purchase a 20 year term life insurance policy at 25$ a month, then the price each month for 20 years will be 25$. At the end of the 20 years the policy will continue if you continue to pay the premiums. However, the price will begin to go up each year–and it will go up dramatically.
At that point it’s good to either get a new term policy, convert to a universal policy, or purchase a new universal or whole life policy.
Term life insurance is a great option for young family’s, people with mortgages, and businesses with key employees. It’s a good option if you only need coverage for a certain period of time.
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November 25th, 2008 at 11:21 am
Term life insurance is good for people who need the largest amount of life insurance protection at the lowest cost, for a specific period of time.
There are several types of term insurance to choose from including: Level term, Decreasing term, Renewable term, Return Premium term, and No exam term life insurance.
Be aware, there is no cash value build up within a term policy. You pay and get only life insurance, no investment.