Term Life Insurance
Term Life Insurance covers the financial risk of death for a given number of years (term) at a level premium cost, and pays a specified death benefit, guaranteed. Term periods available are typically 5, 10, 15, 20, and even 30 and 40 year lengths. Term life insurance builds no cash value -- it is insurance only. It guards against total disruption of a family's finances upon the death of a head of household or spouse by replacing the value of a person's future income stream and/or paying funeral and estate costs.
Who needs it?
Most people, since it pays both for wiped out income and the increased costs that occur for a family after the death of a loved one. In general, anyone who wants to make sure that their family does not have to change its lifestyle after their death needs it. Most families have an especially high risk period, after which life insurance either won't be needed or can be lowered. Common examples are to cover the cost of the mortgage and to ensure a full education for the kids.
Purchase information
There are hundreds of companies that underwrite term life policies. Choosing between them is mostly a matter of cost vs. financial stability, as well as what health rating you can qualify for with each.
Typically, Term Life Insurance providers will require an in-house para-medical exam for most policies. Almost all will request medical records, most will pull driving records and sometimes request financial information. To help you through the process, we suggest you find an insurance agent or broker you trust.
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