Explanation Of Term Life Insurance

Here is a detailed explanation of term life insurance policies.

Term life insurance provides a guaranteed death benefit for a specific number of years.

The death benefit is usually paid in one lump sum but it can be paid in the form of a monthly income.

There is no cash value but the premiums are much lower than those of cash value policies like whole life, universal life and variable life.

What will happen to your family when you die? Have they been provided for? Life Insurance is the solution and we can help. Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Click Here And Save

Detailed Explanation Of Term Life Insurance

Note that if you click the links for each type of policy you will get a more detailed explanation of term insurance...each policy separately.

  • Increasing Premium Term Life Insurance

    In this explanation of term life insurance the increasing premium term policy is a good one to begin with.

    This policy is sometimes referred to as the yearly renewable term policy or the annual renewable term. This is a one year term policy designed for people who have a short term need for life insurance.

    You have the option of renewing this policy at the end of the year but at a higher premium.

    You do not need to re-qualify for your policy. If you keep renewing each year the death benefit does not change...you renew with the same amount of life insurance.

    As this is a term policy there is no cash value. You do have the option to convert to permanent life insurance.
  • Level Term Life Insurance

    In our explanation of term life insurance we can group the other level term policies together as the only differences are the number of years they last and the differences in the amounts of premium.

    5 Year Term

    The 5 year term policy has a level death benefit for the entire 5 year period in which the policy remains in force. The premiums never change...they too remain level.

    You also have the option of converting the policy to permanent life insurance such as universal life insurance, variable universal life insurance, variable life insurance or whole life insurance.

    10 Year Term

    10 year level term lasts for 10 years with a level premium and a level death benefit. The owner of this policy also enjoys the conversion privilege.

    15 Year Term

    This policy also has a level death benefit and a level premium plus a conversion privilege.

    20 Year Term

    The 20 year term policy is one of the most popular term policies available. In any explanation of term life insurance special attention must be paid to this one as it is probably the most liked term policy available.

    It has a guaranteed level death benefit for 20 years and also a guaranteed level premium more often than not.

    Some companies begin with a lower than usual premium which is maintained for 5 or 10 years and increase the premiums thereafter.

    Usually you can, if you would, convert this policy to permanent life insurance at any time during the life of the policy, however, because of the length of the term period some companies limit the conversion period to less than 20 years.

    You may have to convert the policy, if you wish to do so, within 15 years.

    30 Year Term

    The 30 year term policy is similar to the 20 year term but it lasts 10 years longer and the premium is slightly higher.
  • Decreasing Term Life Insurance

    One of the least expensive term life insurance policies is the decreasing term life insurance policy. The premiums are level for the life of the policy but the face amount decreases every year in a uniformed manner.

    This policy is used a lot to pay off the mortgage balance owed on a house in the event of the death of the home owner.

I hope this explanation of term life insurance will be of some help.

There is nothing more important than your family's security. What would happen to your family if you died? Would they be provided for? Compare Quality Quotes and Save up to 70%! The process is Fast, Easy and FREE. Get A Quote Now

Home Explanation Of Term Life Insurance Family Protection Term Life Insurance Policies Decreasing Term Life Insurance Yearly Renewable Term Insurance 5 Year Term Life Insurance Policy 10 Year Term Life Insurance Policy 20 Year Term Insurance Policy 30 Year Term Life Insurance Policy Definition Of Term Life Insurance Affordable Term Life Insurance Charitable Giving Cheap Life Insurance Definition Of A Universal Life Policy How Much Life Insurance Disability Insurance Quote Insurance Commissioners Life Insurance Rate Life Insurance Settlement Low Cost Life Insurance Medical Examinations Nonforfeiture Values Return Of Premium Life Insurance Long Term Care Insurance Viatical Settlements

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  • follow us in feedly
  • Add to My Yahoo!
  • Add to My MSN
  • Subscribe with Bloglines
  1. Life Insurance - Reasons Why You Should Buy Now

    Should life insurance buying be seen as an urgent matter? There is something about some people that at times may cause them to procrastinate about matters that could end up being quite costly...

    Read More

  2. Affordable Term Insurance - Affordable Term Life Insurance Policy

    Let us talk affordable term insurance. You want a policy that can fit into your budget, right?

    Read More

  3. Advantages Of Whole Life Insurance - Advantages To Owning Whole Life Insurance

    It can be a very satisfying feeling when you become aware of the advantages of whole life insurance for the first time.

    Read More

  4. Best Term Life Insurance Rate - Learn Which Is The Best Term Insurance Rate

    The best term life insurance rate can be quite easily found on the internet today because web insurance companies have done intense research on behalf of the consumer.

    Read More

  5. Great 30 Year Term Insurance Policies Explained - 30 Year Term Life Insurance

    I recently did some research on the development of the 30 year term insurance policy over the years. What I learned was quite interesting.

    Read More