Term Life Insurance Defined

Before you get a term life insurance quote online, learn more about term life insurance. Here we'll explain what it is and how it works.

About Term Life Insurance

Term life insurance is the simplest, most affordable type of life insurance. Term life insurance provides short-term coverage for a limited period of time, usually 10, 20, or 30 years. If you die while the policy is active, your beneficiaries will receive the agreed-upon death benefit. If you are still alive when your policy expires, your protection stops unless you renew the policy. Unlike permanent life insurance, term life insurance does not have the ability to accrue cash value over time. Term life insurance is the best way to get a term life insurance quote online that is affordable but also provides an ample amount of protection.

How It Works

When you get a term life insurance quote online, you will usually have your choice of 10-, 20-, or 30-year policies. You will also have to decide how much insurance protection you want. To illustrate how term life insurance works, say you took out a one million dollar, 20-year policy. This means that, if you die within the next 20 years, the beneficiaries you named in the policy would be paid a death benefit of $1,000,000. Conversely, if you are still alive after 20 years, you would need to renew the policy if you don't want your coverage to cease. Before you get a term life insurance quote online, make sure you have an idea of how much coverage your family needs. You want to buy enough coverage to pay for your family's day-to-day expenses as well as big-ticket expenses, such as college tuition. Check out our quote process page for more information.

Good Candidates for Term Life

You might be wondering who should apply to get a term life insurance quote online. Term life is not for everyone, but it is probably the best policy for you if:

• Your need for life insurance protection is temporary
• You have specific needs for your business (e.g., you want insurance protection for a key employee until he/she retires)
• You need a great deal of insurance protection but are on a tight budget