Term Life Insurance Described: Your Top Questions Answered


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Don’t know where to start when it comes to life insurance? You can find all the answers to your questions about term life insurance described here.

Term life insurance means you pay a fixed payment over a set period of time, usually monthly for a period of 10, 15, 20 or 30 years. If you die during that time, your beneficiary receives the financial amount of your policy.

If you are alive after the term is up, coverage either expires or you can renew with a new term. But your rates will change.

There’s a lot more to know about term life insurance. Let’s dive into some top questions!

What’s the Difference Between Whole and Term Life Insurance?

Term life insurance is valid for a set period of time, chosen at the time you start your policy. Typically this is anywhere from 10 to 30 years.

Your rate is guaranteed not to increase during this time. After the term is over, your coverage expires and you will need to get a new policy. You can often convert your current one to a permanent policy too.

Whole life insurance is a policy that lasts for the rest of your life. It’s not fixed to a specific start and end date.

Each type has their pros and cons, and the right fit will depend on each individual’s situation.


What Happens to My Term Life Insurance After It Expires?

After your term is up, you have several options.

Many plans offer an extension of the insurance policy after your term expires. Companies call this their conversion policy or name the policy as convertible term life insurance.

Each insurer handles conversions differently. They will tell you your options for converting to permanent insurance at the time of expiry.

You can choose to keep paying on your current level of coverage but it will be at a much higher price per month.

This is because as we age, health typically declines. Your risk profile for bad health is much higher at the end of your term policy than when you started it.

If you’re still in good health, you may be able to qualify for a fairly comparable rate. If you’re in poor health at the end of your term, unfortunately, your rate will jump quite a bit.


Should Seniors Get Term Life Insurance?

This is a question each person needs to decide for themselves. All situations are different.

Term life insurance can be a good idea for seniors in many situations.

If your current policy’s premiums are increasing, it makes sense to shop around for a new one.

Your needs also may have changed. If you have enough savings to pay for final expenses like a funeral or estate fees, you probably don’t need life insurance.

If you still owe money on your mortgage or other debts or have medical bills to pay, life insurance is a good idea.

Term life insurance described in increments of 10 to 30 years with no medical exam is ideal. The length of the term depends on your life expectancy and budget.

The shorter the term, the lower the premiums.

Compare Term Life Insurance Quotes

Does My Beneficiary Have to Pay Taxes?

No, most term life insurance policy benefits are provided tax-free to the beneficiary.

The exception to this rule are policies where the death benefit is paid in installments. If it is, those installments are taxable.

Lump sum death benefit payments are always tax-free.

I’m Young! Do I Need Life Insurance?

Most likely, yes.

If anyone relies on you for income to maintain their standard of living, or if you have any debt, you could benefit from life insurance.

Most young people start to think about insurance after having their first child. This is definitely a good reason!

Key Benefits of Term Life Insurance Described

Term life insurance is easy to qualify for. Many insurers offer policies with guaranteed acceptance and no medical exam.

It’s also the cheapest form of life insurance, compared to permanent or whole life insurance. It’s cheaper because it’s for a relatively short period of time instead of your entire life.

Term life insurance is great for temporary coverage. An example would be for a growing family.

Financial needs for your family may change over time. A short ten-year policy will ensure you’re covered until your needs for a permanent life insurance plan are figured out.

We make it easy for you to get instant quotes from top insurers and easily apply online for the types of term life insurance described in this article.

What If I Miss a Payment?

If you stop paying your life insurance policy premiums, your policy will become void. You will not receive any of the death or other financial benefits from your life insurance.

Most policies have a grace period for late payment forgiveness, typically around 30 days. Before signing your policy, you should ask what their grace period is. You should also ask and what happens to your policy if that grace period passes.

What’s a Rider?

A life insurance rider is an add-on to your policy that changes the terms of it.

Term life insurance described as a complete solution can still benefit from riders.

Common examples of riders are:

  • Permanent disability, which means you don’t have to pay the monthly premium if you become disabled and can’t work.
  • Guaranteed insurability, which means you cannot be denied coverage for any health reason.
  • Accelerated death benefit, which allows you to collect a portion of your policy’s overall death benefit if you become terminally or critically ill.
  • Accidental death benefit, which pays out an additional amount on top of your policy’s death benefit if you die from accidental causes.

Adding riders to your term life insurance can significantly increase your premiums. Be sure to do your research before accepting them.

Where to Find the Cheapest Term Life Insurance

Price is important, but shouldn’t be the only factor when deciding on term life insurance. Our website makes it easy to find your next policy.

You can find a list of the 25 top rated term life insurance companies, get an instant quote and apply online right here!


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Jeffrey Manola

Jeffrey Manola

Jeffrey Manola is an experienced life insurance agent and the founder of Top Quote Life Insurance. His mission when he created Top Quote Life Insurance was to provide online consumers searching for life insurance with the absolute best quotes for term life insurance, permanent life insurance, no medical exam life insurance, and burial insurance.

Not only does he strive to provide you with the best rates for your life insurance coverage, but he also wants you to be well informed about the different types of life insurance options that are available. You will also find a significant amount of valuable information on the multiple life insurance companies that can provide you with coverage.

Jeffrey Manola is licensed to provide expert advice and help aid in the purchasing process of life insurance products. He is licensed with the National Insurance Producer Registry (NIPR) in the following states:

AL: 790866 AR: 14358927 AZ: 14358927 CA: 0K29801 CO: 531038 CT: 002536246 DC: 3000281706 DE: 3000190912 FL: W383615 GA: 3089339 HI: 482421 IA: 14358927 ID: 646048 IL: 14358927 IN: 3100885 KS: 14358927 KY: DOI-986908 LA: 758187 MA: 2045330 MD: 3000011601 ME: PRN252004 MI: 14358927 MN: 40427014 MO: 8428106 MS: 10519253 NC: 14358927 ND: 14358927 NE: 14358927 NH: 2434852 NJ: 1562332 NM: 14358927 NV: 3299018 NY: LB-1484031 OH: 1117369 OK: 100293583 OR: 14358927 PA: 740709 RI: 3000183893 SC: 14358927 TN: 2383399 TX: 1969337 UT: 648983 VA: 987464 VT: 3426230 WA: 947010 WI: 14358927 WV: 14358927

Never hesitate to reach out to Jeffrey if you need help. Top Quote Life Insurance is more than just an online quoting agency. We want to help you save money, protect your future, and earn your trust (888) 777-7574.

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Life Insurance Rates?

Purchasing Life Insurance has never been easier

Or give us a call...888-777-7574