Term Life Insurance

Term Life Insurance is the original form of life insurance. It can be contrasted to permanent life insurance such as whole life, universal life, and variable universal life. Term insurance functions similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of premium dollars if no claims are filed.

Term Life Insurance provides coverage at a fixed rate of payments for a limited period of time. When that term is over, coverage at the previous rate of premiums you were paying is no longer guaranteed. The client must either forgo coverage or possibly obtain further coverage with different payments and/or conditions. If the insured dies during the active period, the death benefit will be paid to the beneficiary.

There is also a new type of term life insurance that has higher premiums, but will pay back all premium (no interest) at the end of the term policy. Direct insurances will be glad to quote any type of term policy that you need.

Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis. There are three main types of term life insurance: