Term Life Insurance Facts

Get the most important facts about term life insurance here. Find out what the benefits are and what you should know about it before you take out a policy.

Benefits of Term Life Insurance

Here are the main benefits of applying to get a term life insurance quote online:

• You can get a lot of coverage at a low cost
• Most term life policies have a conversion option that allows you to change them to permanent life policies without having to supply additional information about your health or take a medical exam. If your needs change, you will have the peace of mind of knowing that you can always convert your policy to offer a lifetime of protection.
• Death benefits are usually received tax-free. Generally, beneficiaries do not have to pay income tax on life insurance death benefits.
• Term life is a convenient way to supplement existing life insurance coverage. Some of our customers choose to get a term life insurance quote online to add to existing coverage when they have additional financial responsibilities. For example, you might supplement your coverage with term life when you have a mortgage or college expenses to cover.

What to Consider before Buying a Policy

Here are some things to keep in mind before you get a term life insurance quote online or buy a policy:

• Term life policies may become unaffordable as you get older. In the short-term, you will save more money if you get a term life insurance quote online instead of a permanent life insurance quote. However, term life premiums will increase substantially as you age, which might mean your policy will eventually become too expensive to renew.
• Your coverage ceases once your specified coverage term expires. After your policy expires, you will not have life insurance protection unless you pay the increased premium to renew the policy.
• Once expired, your policy will have no further value. One thing to consider before you get a term life insurance quote online is that term life policies have no cash value once they expire. They do not accumulate cash value over time, so your policy will essentially be worthless once the term period expires.

Make sure to check out our glossary of insurance terms before you sign anything.