Understanding Term Life Insurance

Here’s what you need to know about a term life insurance policy.Understanding Term Life Insurance

While most people understand the importance of securing life insurance coverage, many are unclear about their coverage options. One of the most popular types of life insurance is term life. But how does this policy work and what does it cover? Read on to learn more about term life insurance coverage.

What is it?

Term life insurance policies offer life insurance coverage for a set amount of time, or term. Usually, term lengths last for anywhere between 10 and 30 years. Many people secure term life policies because they are straightforward and because they offer coverage for an important period of their lives. For instance, many people secure a term life policy to last them until they retire or until their children are no longer dependent on them.

How does it work?

During your term, you will make your regular premium payments. If you die sometime during your term, your beneficiaries will receive a previously agreed upon death benefit. However, once your term length ends, your life insurer no longer has any obligation to you. If you were to die once your term is up, your beneficiaries will not receive compensation. If you still need coverage after your policy expires, you will have to secure a new policy.

How much does it cost?

Because term life policies only offer you coverage for a set amount of time, they tend to be cheaper than whole life insurance options. That being said, the actual cost of your premium will be dependent on a variety of individual factors. For instance, your insurance costs will vary according to your age, overall health, your lifestyle, and so on.

This is what you need to know about term life insurance policies. Do you have further inquiries regarding your life insurance coverage? If so, contact the experts at Miller Carlisle Insurance Services. We are ready to assist you with all your personal coverage needs today.