Term life insurance is the most straightforward form of life insurance. You determine how long you would like to be insured (5, 10, 15, 20 and 30 year terms are typical) and how much you would like to be insured for, and then purchase a policy that matches your specific needs.

You then make regular premium payments to the insurance company to keep the policy current. Should you die during the term of the policy, your beneficiaries will receive a death payment for the full face value of the policy.

Is a Term Life Policy for You?

A term life insurance policy may be for you if:

• You want life insurance, but can’t afford the steep premiums that whole life and universal life policies carry
• You are young and in good health
• You are looking for temporary coverage (i.e. enough coverage to get you to when the kids are raised, the mortgage is paid, etc.)

Benefits of a Term Life Policy

Term life insurance is popular for a number of reasons:

• It’s inexpensive
• It’s customizable. You decide what you need, and that’s what you get
• It’s straight insurance. You aren’t paying extra to have the insurance company make investments on your behalf, as you would with a whole life policy
• It’s simple to understand. You set the term, and you’re covered for that term

Term Life Shopping Tips

When shopping for term life insurance, look for a policy that has:

1. A fixed premium. This will ensure that your premium stays the same for the life of the policy.

2. A guaranteed renewal. This will enable you to renew your policy at the end of the term (should you want to) – even if your health has declined.

3. A convertibility clause. This will allow you to switch to a different type of term life policy or even to a whole life policy at the end of your term – and you won’t have to endure another medical exam to do it.

As you consider your life insurance options, keep in mind that the premiums for term life insurance are based on your current age and health. So, don’t put off that life insurance purchase any longer, or it could cost you!