Term Life Insurance
Term Life Insurance is often seen as the low cost budget option when it comes to life insurance. Premiums for term life insurance policies tend to be considerably cheaper than their cash-value cousins - whole and universal - especially if you have good health and youth on your side, and you want low cost term life insurance to look after your dependents financially should you pass away unexpectedly.
How Term Life Insurance Works
Term life insurance is life insurance coverage over a specific number of years and for a specified premium. Unlike a whole life or universal life policy, term life insurance policies do not have an associated cash-value. Subsequently, term insurance is regarded as a "pure" form of insurance, in that it insures solely against death and provides death benefit and nothing else. As both the insured and the insurer consider the likelihood of the insured dying over the time the policy minimal, premiums tend to be low.
The three key factors to be considered in term life insurance are: face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term).
These three factors are sold in many different combinations by various insurance companies that offer term life insurance. For example, the face amount can remain constant or in decline, the premium can remain level or increase and the term can be for one or more years. A common type of term life insurance is the annual renewable term, a one year policy where the insurance company guarantees it will reissue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time.
An important endorsement of term life insurance policies is guaranteed renewability as it allows the insured to obtain life insurance even if they become uninsurable.
Want to talk to someone about Term Life Insurance?
Contact a Bryan Insurance Agent today if you need more information about term life insurance or would like a quote tailored to your specific requirements. You can also look through our life insurance policies to see which one suits you best.