Term life insurance

The most popular life insurance coverage option for individuals and families is term life insurance. Term life insurance, also known as pure life insurance, is a type of life insurance that pays out a death benefit if the policyholder passes away during the specified term. When the term expires, a policyholder can renew their policy for another term, allow the term policy to expire, or convert the policy to permanent coverage.

Term life premiums are determined by a person’s age, current health, and life expectancy. You can purchase term life policies that last 10, 15, 20, 30, or 35 years. Some insurance companies allow you to turn term life insurance into a whole life insurance policy. In some situations, a medical exam is required. Your life insurance company may also ask about your driving record, current medications, if you smoke, occupation, hobbies, and family history.

If you pass away during the policy term, your insurer will pay the policy’s value to your identified beneficiaries. This amount is typically not taxable and can be used to cover your healthcare and funeral costs, mortgage debt, consumer debt, and more. If the policy date ends before you pass away, there is no payout. You might be able to renew the policy before it expires, but your premiums will be recalculated for your new age and will likely be higher.

Term life insurance is typically the most cost effective, because it only offers a benefit during a specific period of time, and it only provides a death benefit. Term life is also cheaper, because most policies end before the insurer has to payout on the death benefit, making the overall risk to the insurance company lower.

Benefits of Term Life Insurance

Term life insurance is often most beneficial for young people with children. Parents can obtain a large amount of coverage at a lower cost. Upon loss of life, a parent can leave behind a significant payout that replaces lost income. Learn more about the key features of term life insurance.

Multiple Policy Lengths

With term life insurance you have coverage for a specific period of time, but you have multiple term lengths to choose from. They range from ten to 30 years and you can pick the timeframe that makes the most sense to you.

It’s Affordable

If you are between the ages of 18 and 75 you can buy term life insurance. While life insurance premiums can vary from person to person, term life insurance is the more affordable option, because you are only paying for coverage for a specific period of time vs permanent life insurance where you are covered until you pass.

Pre-Existing Conditions Okay

Insurance Best Prices partners with insurance carriers across the country, including companies that approve term life insurance for individuals with diabetes, have high cholesterol, high blood pressure, are cancer survivors, or have other health conditions.

The Payout is Tax Free

Investing in term life insurance means building financial protection for your loved ones. If you should pass, your beneficiaries would receive the full amount in your policy tax-free. However, if taken in installments, interest earned could be taxable.

You Can Choose How You Pay

If you are the policyholder, you can choose how you want to pay your premiums. You can pay monthly, quarterly, semi-annually, or annually. Insurance companies often offer discounts for those who pay annually.

Your Premiums are Fixed

Fixed payments provide financial stability. Your monthly premium amount won’t change. You will know exactly how much you owe each payment period for the term of your life insurance policy helping you plan for the future.