Because it offers death benefit protection only, without any cash value build-up, term life is considered to be the most "basic" form of life insurance coverage that is available in the market.
These policies will typically offer protection for a specific period of time, such as five, ten, fifteen, twenty, or even thirty years. Many insurers also offer one-year renewable term life insurance policies.
Although term life insurance is considered to be a "plain vanilla" form of coverage, there are actually many different options when it comes to this type of protection. These can include:
- Level Term Life Insurance - A level term life insurance policy offers a set amount of coverage throughout the entire length of the policy. In most cases, the amount of the premium will also remain fixed for the policy's duration.
- Renewable Term Life Insurance - Renewable term life insurance policies can be renewed by the insured after each "term," or time period, has elapsed - up to a certain age of the insured. Generally, there is no need to complete a new application for coverage, or to take a medical exam, in order to renew this coverage.
- Convertible Term Life Insurance - A convertible term life insurance policy may be converted over into a permanent form of coverage, such as whole life or universal life. This, too, can typically be done without the need to take a medical exam.
- Increasing Term Life Insurance - As its name suggests, an increasing term life insurance policy increases the amount of coverage over time, while the amount of the policy's premium will usually remain fixed.
Even though term life insurance will oftentimes cost less than a comparable permanent plan, it is still important to consider several factors in order to ensure that you're getting the right term insurance for your needs.
These criteria include the amount and the length of the policy's benefit, as well as the insurance company that you intend to purchase the policy through. By working with an independent insurance agent, you can compare from a number of different term life insurance plan and premium options, and from there you can determine which will work the best for you.
Term Life Insurance
Term life insurance offers an affordable way to obtain the protection that you need for a set period of time. This type of insurance coverage can provide way to ensure that the balance of a home mortgage is paid for survivors, and / or that other financial needs are
met in case of the unexpected.
Whole Life Insurance
Whole life insurance is a form of permanent life insurance coverage that offers a fixed
amount of protection, as well as a cash value component where the funds inside the
policy can grow and compound on a tax-deferred basis.
No Medical Exam Life Insurance
If you have certain medical issues, or you work in an occupation that is considered to be "risky," then a no medical exam life insurance policy may provide you with an avenue to obtain the protection you need for loved ones, but without having to undergo many of the traditional life insurance underwriting parameters.
Universal Life Insurance
Universal life insurance offers financial protection for loved ones and survivors, as well as a way to build up cash value. These policies are considered to be quite flexible, as the policy holder can typically alter the timing and the amount of the premium payment to meet their personal needs.
Children's Life Insurance
While nobody ever wants to consider the passing of a child, unfortunately unanticipated accidents and illness can occur. Children's life insurance can provide financial protection during an already difficult time. But this type of coverage can also be used in
other ways, too.
A guaranteed issue life insurance policy can provide those who have certain health
issues - including some serious conditions - to obtain the protection that they
need...even if they have been turned down in the past for traditionally underwritten