Term life insurance: What is it & what are the benefits?

Term life insurance is one of the most popular types of life insurance available because it’s straightforward, affordable, and lasts as long as you need it to — for most people, that’s between 10 and 30 years.

What is term life insurance? 

Term life insurance guarantees financial protection for your family over a specific period — the term — before expiring. If you die before the term ends, your beneficiaries receive a life insurance death benefit that can be used to cover funeral costs, bills, replace lost income, or any other expenses.

Because of its low pricing and simplicity, a term policy is the best kind of life insurance for most people.

What are other benefits of term life insurance? 

Low cost: Compared to every other type of life insurance, rates are significantly cheaper. This makes it easy to keep the policy active while saving and investing.

Flexibility: Customizable term lengths and coverage amounts mean you can buy financial protection specific to your needs. 

No cancellation penalty: Unlike other policies, there’s never a fee or penalty for canceling term life coverage. If you don't need it anymore, you can simply end your contract.

Simplicity: Policies with a cash value have fees, interest rates, and other features to manage. Term life has none of those, making it easy to use for its main function: supporting your family in a worst-case scenario.

Ease of applying: For many, qualifying for coverage requires fewer than 20 minutes of answering a health questionnaire, and an offer can be received from insurance carriers in as little as a few minutes. In some cases, insurance companies will ask to take a look at your doctor’s records and may also ask you to complete a physical examination. All of this is done on their dime, at no additional cost to you.

Want to chat about your term life insurance needs? Schedule your free consultation with us here. We’ll be in touch with you before the meeting to let you know what to expect.