What is term life insurance and why is it cheaper than other types of life insurance?
Term life is a type of temporary life insurance that lasts for a specific period of time, usually up to 30 years, or until a certain age, like 65 or 70.
Compared to permanent life insurance, term life costs a lot less because it does not provide lifetime coverage and does not build cash value inside the policy over time.
Term life is pure life insurance protection, not an investment.
The shorter the term (duration) of your life insurance coverage, the lower your rate.
And, the younger you are when you buy the life insurance plan, the lower your rate.
If you die during the term of your term life policy, then your beneficiary gets the death benefit from the life insurance plan.
If you outlive the term of your term life policy, then your life insurance coverage expires.
Renewable term life insurance allows you to renew your term life plan, usually for another 10 years, when your current term life policy expires. And, you won;t have to take a physical exam at renewal, your rate at that time will be based on your age at renewal.
Learn more about how term life insurance works.
Term life is a type of temporary life insurance that lasts for a specific period of time, usually up to 30 years, or until a certain age, like 65 or 70.
Compared to permanent life insurance, term life costs a lot less because it does not provide lifetime coverage and does not build cash value inside the policy over time.
Term life is pure life insurance protection, not an investment.
The shorter the term (duration) of your life insurance coverage, the lower your rate.
And, the younger you are when you buy the life insurance plan, the lower your rate.
If you die during the term of your term life policy, then your beneficiary gets the death benefit from the life insurance plan.
If you outlive the term of your term life policy, then your life insurance coverage expires.
Renewable term life insurance allows you to renew your term life plan, usually for another 10 years, when your current term life policy expires. And, you won;t have to take a physical exam at renewal, your rate at that time will be based on your age at renewal.
Learn more about how term life insurance works.
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