Term Life Facts

The more you know about term life, the better prepared you will be to select a policy. Here are the facts every policyholder should know.

1. Coverage does not last forever. Term life coverage is impermanent, and it will only be active for the period of time, or term, specified in your policy. If you die during this term, your family is paid a death benefit. If you are still alive when the term expires, your protection will cease unless you renew the policy. Thus, term life insurance quotes are for those looking for short-term life insurance protection.
2. Premiums increase with age. As you get older, you will find that term life insurance quotes will get higher and higher to reflect increasing premiums. Each time you renew your policy, your premiums will be substantially higher than when you took out the policy.
3. Term life does not accumulate cash value. Term life insurance does not accumulate cash value over time, so your policy will have no further value once the term expires. If you are not looking for an investment vehicle, term life insurance quotes might be appropriate.
4. Your death benefit can be used as your beneficiaries see fit. If you die while your policy is in force, your beneficiaries can use the money for any number of purposes. They can use it to help cover your funeral and burial costs, replace lost income, invest, etc.
5. Death benefits are usually received tax-free. When you get term life insurance quotes, you can usually count on the death benefit of your prospective policy being received tax-free. Most death benefits are exempt from income taxes, so your family will not have to worry about this expense. Consult with a tax advisor for more detailed information.
6. You chose the length of your term. Most term policies come with terms of 10, 20, or 30 years. You can select the length of your term when you get term life insurance quotes. If you have a very brief need for life insurance protection, you should opt for shorter terms.
7. Term life is ideal as supplemental coverage. Perhaps you have just taken on a second mortgage or sent a child to college. If you face additional financial obligations like these, now might be a good time to get term life insurance quotes. A term life policy is a great way to supplement existing coverage when you have added financial responsibilities.
8. Term life is the most affordable type of policy in the short run. Initially, term life insurance quotes will be much lower than those of a permanent life policy. In the short run, term life policies are the least expensive and most basic type of policy. However, you have to bear in mind that a term life policy could quickly becoming unaffordable later in life because of increasing premiums.

For more information or unanswered questions, read through our frequently asked questions and the answers to them.