What is a 5 year term life policy and how does it work?
A 5 year term life insurance plan provides protection for a period of 5 years.
If you die during the 5 year term, your beneficiary would receive the death benefit from your life insurance policy.
If you outlive the 5 year term, your life insurance expires.
If you need an option of another term, ten consider buying 5 year renewable term life insurance which lets you renew your policy for another 5 year term when the first term ends.
You pay more for this option, but you don't have to take a physical exam to qualify for the renewal. Your renewal rate will be based on your age at renewal of the life insurance policy.
With a 5 year level term life plan your life insurance premium remains level while the amount of life insurance you have stays the same each year.