Term Life Insurance Buying Tips

What is Term Life Insurance?

Term policies provide insurance coverage for a specified period (e.g., a fixed number of years, or to a set age) and then expire. A death benefit is paid only if you die during the term of the policy.

Term policies are commonly available for terms of one, five, 10 or 20 years, or to age 60 or age 65. The premiums usually remain level during the specified term but increase if that term is renewed (e.g., premiums would increase every 10 years on a 10-year renewable term policy).

Most term life insurance policies do not include cash values. Hence, the premium costs are typically lower than for permanent life insurance policies.