Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.

To be clear, there are other types of term life insurance products, such as whole life and universal life. Whole life insurance is what most people think of as term life insurance because it offers the most total lifetime benefit. But both term and whole life policies offer the ability to renew the policy for additional life times, and many policies offer optional deferral of the death benefit while allowing policyholders to control their own.

What is Term Life Insurance?

Term life insurance is an insurance policy designed to protect a consumer’s family if the insured passes away. The term of a term life insurance policy is the time period during which the policyholder is eligible to receive the promised death benefit if he or she dies during that period. Term life insurance is insurance that only guarantees payment of a stated death benefit if the insured dies within a defined period of time. There are no other policy features that need to be met, such as required premiums or additional benefits, to obtain coverage. Term life insurance allows the policyholder to buy a policy with a single premium with no further premium costs.

As the name implies, term life insurance is designed to pay out a single death benefit to a insured on an annual basis, during a specified term. Typically, life insurance policies have a term of 10, 15 or 20 years, with the term and death benefit amount depending on the policyholder’s age. This is not the same as variable life insurance, which provides an annuity with varying, but generally rising payments in the later years. Variable life insurance is usually obtained for a term of 50 to 60 years, with the policyholder making regular payments into the insurance company to ensure their payments remain even during retirement years.

Here’s an example: Bob, age 35, has $250,000 of life insurance through his employer. Bob has a term life insurance policy with a term of 20 years, with a death benefit of $250,000. If Bob dies within the 20-year term, the policy will pay out. The premium is $4,000 per year and due on a monthly basis. Bob renews his policy annually because he’s worried about making a decision about the policy when he becomes eligible for retirement and doesn’t want to risk his entire pension.

When Bob turns 60, his employer retires Bob and the insurance stops paying. Because the insurance term ends when Bob turns 60, Bob’s insurance policy becomes a permanent plan. Bob decides not to renew the policy because he’s younger than he thinks he should be when he retires, and because the coverage doesn’t matter.

Regardless of your age, term life insurance policies come in different forms and are designed to meet the specific needs of the purchaser. That means they can be purchased through the typical insurance agents, and you can find the insurance at your local or online insurance agent, or you can purchase a term life insurance policy online.

Types of Term Life Insurance

There are three main types of term life insurance: whole life, universal life and variable universal life. Each type has its own advantages and disadvantages and may be right for your specific financial needs. Let’s take a closer look at each.

Whole Life: Whole life is the most common term life policy available today. It is the most basic of the term life types. With a whole life policy, you need to purchase a death benefit for every term of coverage. This may seem excessive at first, but the sum assured is determined by your life expectancy. is another term life insurance policy that guarantees payment of a death benefit at the policyholder’s death.

Universal life insurance: Like term life insurance, universal life insurance can be added to as additional coverage over time. As a result, both types of policy can provide a guaranteed death benefit.

Variable universal life insurance: Variable universal life policies are typically available as a “pop-up” product. This means that the policies are a one-time purchase and remain a stand-alone investment product after the customer terminates coverage.

How Term Life Insurance Works

Most term life insurance policies begin with an initial premium paid by the policyholder. That premium pays for an initial term (generally ranging from one to 20 years), and also covers the cost of interest accrued on premiums during the term of the policy. Once the initial term is up, the policyholder must buy new policies if he or she wants to continue coverage for a longer period of time, paying the same premium as before.

Term life insurance premiums usually cost slightly more than standard life insurance premiums, because they must be paid for a longer period of time. The monthly premium for a 20-year term life insurance policy typically ranges from $15 to $25 per month, while the monthly premium for a 30-year term life insurance policy typically ranges from $30 to $60 per month.

Why Term Life Insurance Important To You

In general, the term life insurance most likely is something you’ve never considered. But the fact of the matter is, some kinds of life insurance, like whole life or universal life, are not likely to be of much value if you’re about to run out of money. And the fact of the matter is, a life insurance policy with a relatively long term that doesn’t include any significant death benefits may not be worth purchasing for an individual who is close to or at the end of his or her life. And this means that term life insurance is a type of life insurance that could prove to be very useful.

In addition to the fact that term life insurance is a type of life insurance that can help you avoid premature death, term life insurance can be a particularly valuable type of life insurance for your

There are a few reasons why you should consider term life insurance.

It’s Affordable, It can be quite expensive to insure an individual for a lifetime. This is because of the cost of premium and the fact that one has to remember to keep paying premiums. The cost of term life insurance is affordable as compared to the cost of a term life insurance policy that covers the life of the insured person for a set time period.

You get a fixed amount of money upfront, which is there as a money maker, to be paid to the insurance company as a death benefit at the time of death. The insurance company pays the premium (receipted every month), and the payee gets the money when the insured person dies. The insurance company is entitled to the death benefit. So, term insurance is relatively affordable.