Term life insurance is very popular, and that is probably because most people can find high amounts of coverage at an affordable rate. That is because this is a temporary insurance contract, which will expire after a set time. An insurer will underwrite applicants, and only offer policies to those people that it believes will surive the policy. Common policy terms are 10, 20, or 30 years, though I have seen others.

In general, you can find cheaper term life insurance policies , than whole life insurance, because it does not have a cash value. You are simply paying an insurance premium when you write your check. Sometimes, insurance agents call term insurance, pure insurance, as opposed to whole or universal life insurance which can build up a cash value, but costs more.

Define Term Life Insurance

Again, you may find policies that seem to contain exceptions to these basic rules, but this is a general and simple definition of term life in contrast with permanent coverage.

• Temporary Life Insurance Coverage for a span of time set out in the policy
• No Cash Value. A pure form of life insurance.
• Lower Premiums than other forms of life insurance for the same individual and amount of coverage

Term Life Insurance Rates Vary

Term insurance rates will differ by company, even for the same individual. We found life insurance quotes that varied by $300 a year for the same individual who wanted a 20 year term policy. If you calculate that $300 a year over 20 years of an insurance contract, that would be $6,000!

It can really pay to compare insurance rates before you buy life insurance. We try to make it as easy as possible with our safe, fast, and free life insurance quote form!

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