What Is Term Life Insurance?

In the world of insurance there are two main types of Life insurance policies…(1) term life insurance and (2) Whole Life insurance.

Generally the type of insurance many people purchase is term because it offers affordable rates for a significant amount of life insurance. The reason it is called term is that is only in effect for a short period of time (5, 10 and up to 30 years).

Because you can purchase a large amount of coverage for a reduced price it allows you ensure protection for those that you love the most. If the person covered by the policy passes away prior to the term expiring, the entire payout of the policy is provided to the beneficiaries.

Riders typically offered by a Term policy

When purchasing term life you can choose to add a rider (adds additional benefits to your policy for a minimal amount added to the cost of the premium).

You can purchase riders that offer beneficial services for the insured in the event of a disability/out of work incident, accidental death benefits which can double your payout benefit if you should die in an accident.

Term Life is a very popular option for many young families and those interested in providing protection for their family in the event that they should die. The one disadvantage to term life is that it does not build up a cash value (as in whole life). At the end of the term you will not be able to cash out your policy, but normally, you can renew your term policy without having to be medically qualified again.

To learn more benefits about term life insurance, contact Kelly DeFord today.