Life insurance is a contract that binds an insurance company to compensate a beneficiary in the event of the death of the insured person. If the insured person dies, the insurance company will pay a cash benefit to the beneficiary (typically a family member). Life insurance is often used to protect a family against the economic hardship that could result from the death of a primary income-earner.
Term life insurance is a specific type of life insurance, which has become very popular in recent years. Term life insurance provides protection for a specified period of time, typically 5, 10, 15, 20, 25 or 30 years (this is called the coverage term). The person to be insured selects the coverage term, and a death benefit is paid to the beneficiary (or beneficiaries) if the insured dies while the policy is still in force. Term life insurance works well for people who need coverage for only a specific period of time. For example, when a child is born, a parent may take out a 20 or 25-year term life policy to ensure that in the event of their death, the child will be provided for through his or her college years. There are two main forms of life insurance: term life insurance and permanent life insurance (also known as whole life or universal life). The main differences between these two types of life insurance are:
Term life insurance will pay a death benefit if the policyholder dies within the term of the policy. Permanent life insurance will pay a death benefit regardless of how long you live, provided the premiums are paid. For many people, the need for life insurance protection decreases dramatically once they retire, since upon retirement there is often significantly less income to protect. Thus, for many people a term life policy that extends to retirement age may be appropriate.
Term life insurance is significantly less expensive than permanent life insurance. Permanent life insurance can be used not only as an insurance policy, but also as an investment vehicle. With permanent life insurance, a portion of your premium goes to building cash value with interest. This cash value can be withdrawn before death if needed. Term life insurance cannot be used as an investment vehicle. However, the lower premiums charged to term life insurance policyholders allow them to invest the difference in whatever manner they choose (401K, stocks, bonds, savings account, etc.). Additionally, many term life policies have conversion privileges which allow them to be converted to permanent policies under some circumstances.
These are some of the main differences between term life and permanent life insurance. Deciding which is most appropriate for you is a personal decision.
Affordability and Flexibility
Term Life insurance provides coverage for between 5-30 years, and is typically less expensive than whole life insurance.
A Comprehensive Selection
Compare choices from a broad selection of quality Term Life insurance plans to find the option best suited to your needs and your pocketbook.
Term Life Insurance Values
Not only can life insurance provide a replacement for lost income, but it can also be used for mortgage and debt protection, education expenses, estate taxes, and much more.
The Best Prices Available
Because insurance rates are filed with and regulated by your state government, you won't find the plans we sell offered for less anywhere else.
Customer Care is Our Priority
We want you to have the best insurance shopping experience available. Your quotes are backed by licensed insurance agents with years of experience helping consumers make the most of their life insurance dollars.