Term life insurance is designed for individuals with a temporary need for coverage.

Term life insurance is designed for individuals with a temporary need for coverage. It pays a benefit only if you die while the policy is in force , and it offers the most initial protections for the least amount of premium. Over time, permanent insurance is more cost-effective.

There are basically 2 kinds of term life insurance policies:

  • Level term – Provides a level death benefit for a specified period of years [ usually 5,10,15 and 20 years], at a guaranteed level premium.
  • Annually renewed Term – Provides a level death benefit for a specified period of years Premiums increase every year.

For specified period of time, most term policies can be converted to permanent insurance regardless of your insurability.

Jeff Johansen

Jeff Johansen

Founder at Lifeline Solutions
Jeff Johansen

Latest posts by Jeff Johansen (see all)