[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.easyquotes4you.com\/a-simple-guide-to-term-life-insurance\/#BlogPosting","mainEntityOfPage":"https:\/\/www.easyquotes4you.com\/a-simple-guide-to-term-life-insurance\/","headline":"A Simple Guide to Term Life Insurance","name":"A Simple Guide to Term Life Insurance","description":"Term life insurance is a basic, cheap, and relatively easy concept to understand. It can provide a death benefit with a stated premium that guaranteed level for the term period selected. Therefore, it is an excellent choice for the most consumers.","datePublished":"2018-12-17","dateModified":"2026-05-05","author":{"@type":"Person","@id":"https:\/\/www.easyquotes4you.com\/author\/site-admin\/#Person","name":"Rob Pinner","url":"https:\/\/www.easyquotes4you.com\/author\/site-admin\/","identifier":1,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/e4da538e10e071b419f4843e8193941a0ff5ad58e937daa177fa846a5124dc4d?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/e4da538e10e071b419f4843e8193941a0ff5ad58e937daa177fa846a5124dc4d?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Rob Pinner","logo":{"@type":"ImageObject","@id":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/logo-shape-e1536791917640.png","url":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/logo-shape-e1536791917640.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/term-life-insurance-1.png","url":"https:\/\/www.easyquotes4you.com\/wp-content\/uploads\/2018\/09\/term-life-insurance-1.png","height":750,"width":1200},"url":"https:\/\/www.easyquotes4you.com\/a-simple-guide-to-term-life-insurance\/","about":["Life Insurance","Term Life Insurance"],"wordCount":1544,"keywords":["annual renewable term","cheap term life insurance","decreasing term","decreasing term life","insurance","level term","level term life","life insurance","life insurance policy","living benefits rider","online life quote","simple guide to term life","term","term life","term life insurance","term life riders","term rider","types of term","types of term life insurance"],"articleBody":"            Quick Navigation Links                                    Show                                                    1                Types of Term Insurance                                2                Annual renewable term (ART)                                3                Level term life insurance                                4                Decreasing term life insurance                                5                Who Needs Term Life Insurance?                                6                The Cost of Term Life Insurance                                7                Our Thoughts                                8                Frequently Asked Questions                                9                What is term life insurance?                                10                Who needs term life insurance?                                11                What is annual renewable term life insurance?                                12                What is level term life insurance?                                13                What is decreasing term insurance?        Term life insurance is a basic, cheap, and relatively easy concept to understand. It can provide a death benefit with a stated premium that is a guaranteed level for the term period selected. Therefore, it is an excellent choice for the most consumers.Just as the name suggests, a term insurance policy is usually meant for a specific span of time, which could range from a year to 10, 15, 20 or even 30 years. Knowing that you typically need life insurance until you are debt free or accumulated enough savings to take care of any financial obligations, term life insurance is an inexpensive way to meet this need.If you die during the term period, then your listed beneficiaries will receive a payout, which is referred to as the death benefit. If you die after the term has expired, you will not receive a payout.A term policy normally has a maximum issue age also. If you are older than 80 years, for instance, it will difficult for you to secure term insurance.Types of Term InsuranceThere are three types of term life insurance:Annual renewable term (ART)Annual renewable term life or ART offers 12 months of coverage that you renew on an annual basis. Annual renewable term typically has the lowest annual premium to begin, but this increases as you grow older. If your concern is to keep the initial costs low, for instance, because you only need the life insurance to cover a loan for a short time, you should consider the annual renewable term.Level term life insuranceLevel term life insurance allows you to lock in the premium for your chosen term period. Your premium will never change from the beginning of the term to the end of the term. This could be an excellent way to cushion yourself from unwarranted premium increases as you get older. It is like the peace of mind you enjoy from a fixed-rate mortgage as compared to one with an adjustable rate.Decreasing term life insuranceDecreasing term life\u00a0 is the policy most used for mortgage protection insurance. The death benefit decreases each year, while the premium remains level. These policies are often no medical and approved instantly.Who Needs Term Life Insurance?The truth is that unless you are entirely free of any responsibility or debt, with no children or person depending on you, it would be wise to have term life insurance in place. Whether you are a full-time parent or the breadwinner, your role in the family is crucial, and if you were absent, the value you bring would need some replacement and this would cost money. This is when\u00a0 term life insurance comes in handy.Starting a Family\u2013 Financial security is usually a priority in such a life-changing event. If either spouse were to die, the surviving one would have to deal with everything alone and would have to alter their lifestyles to support the family. For instance, the main breadwinner would have to cut back or stop work to care for the children. Alternatively, someone who cares for the children on a full-time basis would have to look for a job to keep up with all the family expenses. In either scenario, having a term life insurance payout to aid would make a huge difference.Taking out a Mortgage\u2013 Although a new home is exciting, it also creates more responsibilities and liabilities. If you are unable to keep up with mortgage payments, your lender could easily repossess your home. If you passed on, having term life insurance would aid in paying the mortgage or clearing the debt completely so that your family doesn\u2019t risk losing their home.Funeral Costs\u2013 We rarely have this in mind, but if you were to pass on, your loved ones would obviously have to find cash to arrange for funeral costs in addition to everything else they would be dealing with and going through during such a difficult time. A term life insurance payout would be an easy way to aid with these financial burdens.Income Replacement\u2013 A term life policy can take the worry out of how your family will continue to pay bills if you pass away. Many families are two income households and an untimely death could leave a huge financial strain.Special Needs Parents\u2013 With the costs of raising a special needs child rising and government help at a minimum, term life insurance could help alleviate this problem. We all want to make sure our children our cared for especially the ones who are not able to do this themselves.The Cost of Term Life InsuranceTerm life insurance is probably more affordable than you initially thought. However, the cost is often determined by four main factors as outlined below.Your Age\u2013 The younger you are the cheaper term life insurance is going to be. Also, depending on your age, term life insurance may on be available for a certain number of years. It\u2019s important to purchase the right length the first time because you could be aged out when your initial term expires.The Amount of Coverage\u2013 How much death benefit you choose will affect what the cost of your term life policy is. The higher the death benefit the higher the premium. A lot of life insurance carriers also give price breaks at certain death benefit amounts. So, it\u2019s advised to get multiple quotes with varying death benefit amounts when shopping.Health Condition\u2013 Your personal health status will also play a huge role in what your premium will cost. The better health you are in, the cheaper the premium will cost. Factors such as smoking, obesity, diabetes, and family health history will affect the premium negatively.Riders- Riders or policy additions also impact the cost of your term life insurance. Riders are benefits added to a term life insurance policy usually at an extra cost. These riders include, waiver of premium, disability income rider, spousal term rider, child rider, and living benefits rider. However, it is important to note that adding some extra benefits to your existing insurance policy could be a crucial decision depending on your current situation.For instance, if you are a parent who relies on work to earn an income, you could decide that a living benefits rider would provide a layer of financial protection to your existing term life insurance policy just in case you are rendered unable to work because of a serious illness. In some cases, however, disability income protection insurance would be a more suitable option. This type of policy provides a payment while disabled should you be unable to work.Our ThoughtsTerm life insurance is a popular choice for most consumers and with good reason.\u00a0 You can cover a lot of obligations for an affordable cost. It gives you peace of mind knowing that your family is secured, without breaking the bank.Term life insurance can be used to cover debts for specific period of time and can be cancelled anytime the debt has been paid. We recommend term life to most of our clients but we also explore all other options. This ensures that the right policy was chosen for their unique situations. If you would like term life quotes just follow here. If you have any questions please contact us here.\u00a0Frequently Asked Questions\t\t\t\t\t\t\t\t\tWhat is term life insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTerm life insurance is a basic, cheap, and relatively easy concept to understand. It provides a death benefit for  a stated premium that is a guaranteed level for the term period selected.  \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWho needs term life insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tThe truth is that unless you are entirely free of any responsibility or debt, with no children or person depending on you, it would be wise to have term life insurance in place. Whether you are a full-time parent or the breadwinner, your role in the family is crucial, and if you were absent, the value you bring would need some replacement and this would cost money.  \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat is annual renewable term life insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tAnnual renewable term offers 12 months of coverage that you renew on an annual basis. Annual renewable term typically has the lowest annual premium to begin, but this increases as you grow older. If your concern is to keep the initial costs low, for instance, because you only need the life insurance to cover a loan for a short time, you should consider the annual renewable term. \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat is level term life insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tLevel term life insurance allows you to lock in the premium for your chosen term period. Your premium will never change from the beginning of the term to the end of the term. \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat is decreasing term insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tDecreasing term life insurance is a policy most used for mortgage protection. The death benefit decreases each year, while the premium remains level. These policies are often no medical and approved instantly. \t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t{\t\t\"@context\": \"https:\/\/schema.org\",\t\t\"@type\": \"FAQPage\",\t\t\"mainEntity\": [\t\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"What is term life insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"Term life insurance is a basic, cheap, and relatively easy concept to understand. It provides a death benefit for  a stated premium that is a guaranteed level for the term period selected.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t,\t\t\t\t{\t\t\t\t\"@type\": \"Question\",\t\t\t\t\"name\": \"Who needs term life insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"The truth is that unless you are entirely free of any responsibility or debt, with no children or person depending on you, it would be wise to have term life insurance in place. 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