Term Life Insurance Definition
Term Life Insurance is a insurance policy that provides coverage for a specified period of time such as 10, 15, 20, 25, and 30 years being the maximum. The death benefit is paid only if you die within the specified term. Term Life Insurance typically offers the largest insurance protection for your premium dollar and does not build cash value.
What Are The Term Life Uses
Most young families purchase term life insurance to cover the mortgage, children’s education expenses, debt, and to provide an income stream if the household bread winner passes away. Businesses also use term life insurance to cover loans and to secure the investment of shareholders.
How Term Life Insurance Works
Term life premiums are based on age, sex, health, weight as determined by the insurer. Other items that can affect the premium are family health history, occupation, and tobacco use.
The younger a person is when applying for life insurance, the lower the premiums. A person between the ages of 20-35 is less likely to die than a person 45-60 years of age.
Term Life Insurance or Whole Life Insurance
Term insurance is sufficient for most families, but there are situation where whole life insurance may provide a better option if the insurance is needed for more than the specified lengths categorized by term insurance. If you are looking for very low premiums with the ability to choose the policy length then term is a good option. If you need lifetime coverage and are also considering a cash value option, then whole life or a permanent life insurance policy is a better option. If you are still unsure which would work better for you situation, the use the quote for to get in contact with Qwik Life Insurance representative simply call 1-847-241-6544.
Policy Features | Term Life | Whole Life |
| Lifetime coverage | X | |
| Low Premium | X | |
| Accumulates Cash Value | X | |
| Choice of Policy Length | X |
Million Dollar Term Life Insurance
There are many reasons why people may need life insurance policies of one million dollars and greater. The good news is although the face amount of the life insurance policy may be great, this does not signify the actual costs of the million dollar life insurance. Life insurance policies for $1 million or $5 million are actual quite affordable whether it’s a term or a whole life insurance policy.