what is term life insurance

30 year term life insurance quote

A simplified issue can be a good fit if you're looking for:

A life insurance policy is a contract between you and an insurance company. In exchange for regular payments, called premiums, the insurer pays out money after you die. This payment goes to the people you choose as beneficiaries - usually children, a spouse or other family members. It can be an important safety net if anyone depends on you financially. Beneficiaries can use the money to repay debts, replace your income, or provide funds for future expenses like college tuition.

20 year term life insurance quotes

A loved one's death is devastating emotionally and can have a profound impact on every area of your life. Everyday expenses suddenly become more difficult to pay for. The first step in protecting your family and preparing them for the future is to plan by choosing the right life insurance option. To ensure the financial security of your loved ones, you need a comprehensive and flexible coverage option.

Honesty is the most important thing, regardless of how many questions you ask. If you lie or misrepresent anything, insurers can cancel your policy within the first two-years of coverage. Insurers can confirm your information even if you have not completed a medical exam. Insurance companies frequently check your answers against Prescription databases. The Department of Motor Vehicles. The Medical Information Bureau. Physician statements.

20 year term life insurance quotes
life insurance term plan

life insurance term plan

You have many options when choosing how long your term life insurance should last. Typically, you can buy coverage for one, five, 10, 15, 20, 25 or 30 years. Policies that last one or five years can help cover short-term debts or expenses you currently pay, like a child's tuition. Alternatively, if you're the breadwinner and want a policy to cover your mortgage, a 30-year term might be a better match. These needs disappear over time, and so might your need for a policy.

Quick approval: There is no need for a medical exam and you can get coverage immediately. This could be useful if you have an urgent need for coverage, such a trip.

how does term life insurance work

The best option for young families is term life because it covers only a short period and is usually less expensive than permanent coverage. It is possible to buy a policy that will cover the years your family is dependent on you financially. You can also lower your coverage once your children become financially independent.

difference between term life insurance and whole life
difference between term life insurance and whole life

A life insurance contract is a contract between you, the insured company. In return for regular payments (called premiums), the insurer pays money when you die. This payment is made to the beneficiaries you have chosen, usually your children, spouse, and other family members. This can act as a safety net for anyone who is financially dependent on you. Beneficiaries can use the money for repayments, to replace your income, and to fund future expenses, such as college tuition.

term life insurance

usaa term life insurance

Two main types of life assurance are permanent and term. There are many policies available within these two main categories. Knowing what is right will help you create a strong life insurance policy.

A way to cover final needs. Since the coverage amounts are lower than other types of life insurance, many people use the guaranteed issue as a form of final expense insurance. It can help you cover funeral expenses or related medical bills and pay off end-of-life debts. The guaranteed issue can also give you the means to leave a small legacy behind for your children or grandchildren.

usaa term life insurance

Frequently Asked Questions

In its simplicity, term life insurance offers coverage for a specific period and doesn't include a cash value component. On the other hand, whole life insurance provides lifelong coverage and may build cash value over time.
 Unlike whole life insurance, term life insurance offers coverage for a specific period and doesn't include a cash value component. On the other hand, whole life insurance provides lifelong coverage and may build cash value over time.

Term life insurance is a policy that provides coverage for a set period, like 10, 20, or 30 years. If the policyholder passes away during this time, their beneficiaries receive a death benefit.

Many term life insurance policies offer a conversion option, putting you in control. This allows you to switch to a permanent life insurance policy before the term expires, usually without requiring a medical exam.