Term life insurance, also known as pure life insurance, guarantees payment of a stated death benefit if the covered
person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the term life insurance policy to terminate.
How Term Life Insurance Works
This is the most straightforward type of life insurance policy. You pay premiums on a monthly or annual basis, and your dependents are protected during the policy term. There are a variety of affordable term life insurance products available. Our agent at Helga Rivera Insurance in Dallas, Texas, can help you find a term life insurance policy to fit your budget, timeframe, and needs.
Types of Term Life Insurance
There are several term life insurance options to choose from such as select term, return of premium, and instant answer term.
You select 10, 20, or 30 years of coverage with level premiums for the initial policy period, which will increase annually thereafter. The policy may be renewable and convertible to a permanent policy.
Return of Premium
This type of insurance gives you coverage with a level premium for your choice of 20 or 30 years. All the policy premiums you have paid will be returned to you if you outlive the policy period.
Instant Answer Term
This type of policy provides death benefit protection for 10 years or until you turn age 50, whichever is longer. It is designed to provide base-level life insurance at an affordable rate.
The cost of term life insurance depends on the type and term of the policy, as well as other factors. A knowledgeable agent at Helga Rivera Insurance in Dallas, Texas, can help you select the right term life insurance to protect your family. We are easy to reach, as we live and work right here in Dallas.
Term Life Insurance Key Takeaways
Term life insurance guarantees payment of a stated death benefit to the insured’s beneficiaries if the insured person dies during a specified term.
These policies have no value other than the guaranteed death benefit and feature no savings component as found in the whole life insurance product.
Term life premiums are based on age, health, and life expectancy.
Depending on the insurance company, it may be possible to turn term life into whole life insurance.
You can often purchase term life policies that last 10, 15, or 20 years.