[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.easyquotes4you.com\/term-life-insurance-explained\/#BlogPosting","mainEntityOfPage":"https:\/\/www.easyquotes4you.com\/term-life-insurance-explained\/","headline":"What is Term Life Insurance?","name":"What is Term Life Insurance?","description":"Quick Navigation Links Show 1 Types of Term Life Policies 2 Level Term Life Insurance\u2013 3 Decreasing Term Life Insurance\u2013 4 Annual Renewable Term Life Insurance\u2013 5 Convertible Term Life Insurance\u2013 6 No Medical Exam Term Life Insurance- 7 Group Term Insurance- 8 Living Benefit Term Life Insurance\u2013 9 Can I Add Riders to my.. <a class=\"moretag\" href=\"https:\/\/www.easyquotes4you.com\/term-life-insurance-explained\/\">More<\/a>","datePublished":"2018-09-30","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\/term-life-insurance-explained\/","about":["Life Insurance","Term Life Insurance"],"wordCount":1355,"keywords":["American National Life","annual renewable term","Assurity Life","buy online","convert term","experienced agent","expire","group life insurance","independent agency","independent agent","instant quoter","insurance","life","life agent","life insurance","online life quote","purchase","renew policy","term","term insurance","term life","term rider","Transamerica","Transamerica Life","Transamerica review"],"articleBody":"            Quick Navigation Links                                    Show                                                    1                Types of Term Life Policies                                2                Level Term Life Insurance\u2013                                3                Decreasing Term Life Insurance\u2013                                4                Annual Renewable Term Life Insurance\u2013                                5                Convertible Term Life Insurance\u2013                                6                No Medical Exam Term Life Insurance-                                7                Group Term Insurance-                                8                Living Benefit Term Life Insurance\u2013                                9                Can I Add Riders to my Term Life Insurance?                                10                What are the Pros and Cons of Term Life Insurance                                11                Advantages of Term Insurance:                                12                Disadvantages of Term Insurance:                                13                My thoughts on Term Life Insurance                                14                What is term life insurance?                                15                What is the cheapest life insurance available?                                16                What are the different types of term life insurance?                                17                Is term life insurance better than permanent life insurance?        What is term life insurance?\u00a0 Term life insurance is policy that provides a death benefit for certain amount of time.\u00a0 If you, the insured, passes away during that set time period, then your beneficiary would receive the death benefit.With term life insurance policies, you choose the benefit period that best suits your situation at the time.\u00a0 The benefit period can range from 10 years to 30 years.\u00a0 The premium is guaranteed during the benefit period that you have chosen.\u00a0 Premiums associated with term life insurance tend to be a lot cheaper than those of permanent policies.Term life insurance is used most commonly to help families cover any outstanding financial obligations such as:Child\u2019s EducationMortgage LoanBurial ExpensesCredit Card DebtStudent LoansCar LoansFuture Lost IncomeTypes of Term Life PoliciesWhile term is easier to understand, there are quite a few variations that you will need to know about before purchasing.Level Term Life Insurance\u2013Level term is the most common term policies purchased today. The death benefit is level for the life of the policy, unless you choose to reduce it.\u00a0 The premiums remain level during the benefit period chosen.For example, if you bought a 20-year term, the premium is guaranteed for 20 years.\u00a0 You can expect that premium to rise quite a bit after the 20-year benefit period.Decreasing Term Life Insurance\u2013This type of term policy you don\u2019t see as often anymore. Decreasing term life policies have a level premium, but the death benefit decreases each year on the policy anniversary date.Decreasing term life policies are generally used for mortgage loans and business loans.\u00a0 The reason you don\u2019t see them as often is the cost of level term has decreased for the last 20 years, making them comparable in price.Annual Renewable Term Life Insurance\u2013Annual Renewable Term life policies have a level death benefit, but the premiums rise each year based only on you age. The benefit period is usually to age 90, but I have never seen someone pay for one that long.Annual Renewable Term Life polices tend to start out with low premiums (because your younger), but as you get older they tend to start to increase more and more.\u00a0 They usually become more expensive than the client wants to pay and are canceled.Convertible Term Life Insurance\u2013Most level term insurance comes with a convertibility clause or option, but not all. The convertibility option attached to a term policy allows you the option to convert your term policy for a permanent policy without any medical review or questions.Remember your premium will be based on your age at that time and you will be converting to a permanent policy, so the premium will be higher.\u00a0 This is a great clause to have if your health has changed and your term is about to run out.No Medical Exam Term Life Insurance-This type of term\u00a0 policy is when you are not required to complete an exam (blood-work, urine sample, etc.). This can convenient to some but be weary, these types of policies can be much more expensive than an ordinary level term life.\u00a0 Always get multiple quotes in order to make an informed decision.Group Term Insurance-This is referring to term life policies that are offered through your employer. While these are appealing, remember if you leave your job for any reason, you usually lose the coverage.\u00a0 These types of term insurance policies are great if you have pre-existing health problems because usually no exam is required.Living Benefit Term Life Insurance\u2013This type of policy is somewhat new to market. These policies are level term life insurance with living benefit rider already built into the premium.\u00a0 The living benefits feature allows you access to a percentage of the death benefit if you were to have a major medical condition such as:Heart AttackVision, Hearing, or Speech LossEnd Stage Renal Disease (Kidney Failure)ParaplegiaStrokeMultiple SclerosisComaHIVAngioplastyCancerAortic SurgeryParkinson\u2019s DiseaseSevere BurnsCan\u2019t perform 2 of 6 ADL\u2019s (activities of daily living)Also, if you are terminally ill (life expectancy of 2 years or less) you would also have access to up to 80% of death benefit to help pay with any bills or financial obligations.\u00a0 Any funds received early are subtracted from the face amount if you pass away.Can I Add Riders to my Term Life Insurance?Many of the term life insurance policies come with riders that you can add at an additional cost.\u00a0 Most commonly offered our:Waiver of Premium\u2013 This company waives the premium if you become disabled. You will have to provide documentation from your doctor each year, but the carrier will pay the premium for as long as you are disabled.Disability Income\u2013 This rider allows you have some disability income if you were to become disabled. The benefit amount ranges from $250-$2,500 a month.\u00a0 Most disability income riders have 90-day elimination period with a 2-year benefit period.Living Benefits Rider\u2013 If your policy doesn\u2019t have the living benefits rider already incorporated into it, then some companies will allow you to add this rider for an extra fee. See above for what this rider covers.Accidental Death Benefit-\u00a0This rider pays a specified amount (you choose, but most of the time double) plus the original death benefit if you pass away due to an accident.Return of Premium Rider\u2013 This feature, which not as common anymore, allows for all premium paid into the policy, at the end of the benefit period, to be refunded. You can also use the premium accrued to buy a \u201cpaid up policy\u201d.What are the Pros and Cons of Term Life\u00a0 InsuranceAdvantages of Term Insurance:Low PremiumLiving Benefits Feature (on some)Temporary CoverageBiggest Bang for your buck if a claim is paidDisadvantages of Term Insurance:Will expire at some pointNo Cash ValueInflexible (Premium is set and must be paid)Premiums could increase depending on what type of policy you purchasedMy thoughts on Term Life InsuranceI think term insurance policies play an intricate role in the make up of our financial portfolios.\u00a0 If you have a family with children term life is essential in protecting their futures in the event of an untimely death.\u00a0 I think it\u2019s important to have enough term insurance during the years it is needed the most, but also have some type or permanent coverage that will be there when you get older.\u00a0 If you have any questions or comments, please let us know.\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 policy that provides a death benefit for certain amount of time.\u00a0 If you, the insured, passes away during that set time period, then your beneficiary would receive the death benefit. \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 the cheapest life insurance available?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tTerm life insurance is going to be your cheapest option when buying life insurance. Term life is less expensive because it only last a certain number of years and does not build up any cash value.\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 are the different types of term life insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tThere are 3 types of term life insurance:1. Level Term Life2. Annual Renewable Term Life3. Decreasing Term Life\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tIs term life insurance better than permanent life insurance?\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tIf you only need coverage for certain amount time then term life will be your best choice. If you want to have life insurance that last forever you might want to look at permanent life insurance.\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 policy that provides a death benefit for certain amount of time.\u00a0 If you, the insured, passes away during that set time period, then your beneficiary would receive the death benefit.\"\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\": \"What is the cheapest life insurance available?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"Term life insurance is going to be your cheapest option when buying life insurance. Term life is less expensive because it only last a certain number of years and does not build up any cash value.\"\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\": \"What are the different types of term life insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"There are 3 types of term life insurance:1. Level Term Life2. Annual Renewable Term Life3. Decreasing Term Life\"\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\": \"Is term life insurance better than permanent life insurance?\",\t\t\t\t\"acceptedAnswer\": {\t\t\t\t\t\"@type\": \"Answer\",\t\t\t\t\t\"text\": \"If you only need coverage for certain amount time then term life will be your best choice. If you want to have life insurance that last forever you might want to look at permanent life insurance.\"\t\t\t\t\t\t\t\t\t}\t\t\t}\t\t\t\t\t\t]\t}"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"What is Term Life Insurance?","item":"https:\/\/www.easyquotes4you.com\/term-life-insurance-explained\/#breadcrumbitem"}]}]