ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Learn about Term Life Insurance Online

Updated on September 19, 2009
 


What is Term Life Insurance?


Term life insurance is a form of life insurance that provides protection for a specific number of years.


Term life insurance is temporary life insurance protection. Term life insurance is considered "Pure Protection", because you pay only for the life insurance. There is no cash value build up within the policy.


Term life insurance usually offers coverage for 1-30 years. Common lengths of coverage are available for 10, 15, 20 or 30 years. Depending on your age and health, you may even be able to get term life insurance for 40 years.


Term life insurance is often purchased by consumers to provide protection for their outstanding loans, including home loans, car loans, student loans, and credit card debt.


Many couples and young families choose term life insurance because it may offer the most affordable option if you are on a budget.


Example of Term Life Insurance


For example, a person buys a 10 years level term life insurance policy with a coverage amount of $100,000 and names their spouse as primary beneficiary.


If the insured person dies within the 10 year term of the policy, the spouse would receive the $100,000 from the life insurance policy. Life insurance proceeds with an individual named as beneficiary are usually paid free from federal income tax.


However, if the insured person in our example were to outlive their 10 year term, the policy would expire and no money would be paid out.


Some term life insurance policies are renewable, or may be converted to permanent (whole) life insurance.


Standard Features of Term Life Insurance


Term life insurance has three standard features which include Level, Convertible, and Renewable.


Level term life insurance usually refers to the life insurance premiums remain the same each year of the policy. The amount of coverage may also stay the same. Level term life insurance offers you rates and coverage that may stay the same for the entire term of the policy, usually up to 30 years.


A term life insurance policy may be convertible, offering you the option of converting the policy into a permanent life insurance policy. The owner of the life insurance policy usually has a specific number of years during their term life insurance policy in which to choose to convert their policy to a permanent plan. Life insurance premiums will increase for the permanent life insurance policy.


Some term life insurance plans are renewable. Term life insurance that is renewable offers the owner of the policy the option of renewing their policy at the end of the policy term. This option is usually offered up to a specific age limit, usually age 65 or 70.

For example, a 10 year term life insurance policy may be renewed for another 10 year term. If the life insurance policy is renewed, a physical examination may be required. The annual premium of the term life insurance policy will usually increase when the policy is renewed.

Types of Term Life Insurance

  • Decreasing Term Life Insurance - provides a life insurance coverage amount that decreases each year the policy is in force. Your life insurance premiums remain the same for the entire term of your policy.
  • Annual Renewable Term Life Insurance - provides the owner of the policy the option to renew their term life insurance coverage each year, usually up to a specific age limit.
  • Renewable Term Life Insurance - provides coverage that is renewable at the option of the insured person. The insured is not required to take a physical exam. Regardless of the insured's health, the insured must be allowed to renew the life insurance policy.
  • Level Term Life Insurance - provides coverage and premiums that remain the same for the entire term of the policy - usually 10, 15, 20 or 30 years.

Reference Source:

Life Happens.org - Non Profit organization providing learning tools and videos to help consumers learn about life insurance.

Term Life Insurance - Learn about term life insurance, review articles, and tips, and compare reviews of carriers.




Term Life Insurance
Term Life Insurance

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      TermLifeInsurance.com 6 years ago

      Thanks for the great info. Everyone's circumstances are different and they should consult an agent before making such an important decision. There are also many different options when it comes to a term life insurance plan, so you can find just the right one for your specific situation. Definitely talk to an agent about your options. You can get free quotes from http://www.termlifeinsurance.com/

    • Pinney Insurance profile image

      Pinney Insurance 7 years ago from Roseville, CA

      Great hub on the basics of term life insurance and what exactly it entails. There is definitely a certain group of people who can really benefit from taking out term life insurance in place of other life insurance plans. It all depends on your own circumstances and your family as well.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)