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Term Life Insurance

Life insurance can be confusing and difficult to understand. There are several options available when deciding which life insurance policy best suits your needs and fits your budget. Term life insurance is one of the most commonly purchased versions of life insurance and is available in many varieties so that you can find a policy that fits your needs.

A term life insurance policy provides coverage to the policy holder at a fixed rate for a specified period of time, or term. Once the specified term is completed, the policy is no longer valid and the policy holder must forego coverage or renegotiate coverage at new rates and under new conditions. If the policy holder dies before the end of the term, the policy death benefit will be paid to the beneficiary. If the policy holder does not die during this time, neither the policy holder nor the beneficiaries receive any monetary compensation.

Term life insurance is the most affordable kind of life insurance because there is no guarantee of payout with each policy. Commonly, policies are issued for the length of 5, 10, 15, 20, or 30 years. Length of insurance is dependent on the age of the applicant and inherent risk of death during the applicable policy. Applicants may be disqualified for coverage if they are considered too high risk or if they are susceptible to or currently have a terminal illness or other mortal affliction.

Because there is no guaranteed payout with term life insurance, its primary use is to provide for financial responsibilities for the insured. Term life insurance is generally seen as a way to cover potential expenses in the unexpected event of a death until a time when there are sufficient savings available to provide for those whom the insurance policy was expected to benefit. Once the policy expires, it is generally expected that there will be enough in savings to forego the need to renew. If this is not the case, however, some insurance providers offer a renewal option that allows the policy holder to renew at the same rate. Terms vary per policy and can be negotiated with the insurance provider.

If you are considering a life insurance policy and need protection for just a short period of time, a term life insurance policy may be the best option for you. Learn more about which policy best fits your needs by filing out the form and speaking with a licensed insurance professional.

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