If you’re preparing to shop around for a life insurance quote, it’s important to understand what term life insurance actually is. Term life insurance, term life, or term insurance all refer to the same thing, and that is a life insurance policy that is in effect for a pre-set period of time. You can typically obtain a term life insurance quote for a policy that lasts between 5 and 30 years. After your policy expires, your term life insurance coverage is no longer in effect.
Term life insurance is very straightforward, and it will also be your most affordable life insurance quote option. Term life insurance is affordable because these policies involve death benefit protection only. A term insurance policy has no cash or loan value outside of the benefits payable upon death during the policy’s term.
While it first it may seem odd to think of obtaining a life insurance quote for only a certain number of years, it actually makes very good sense. You may feel for instance you and your spouse or partner need extensive life insurance coverage for the period of time until your children graduate college, or until your mortgage or a business loan is paid off. You may feel comfortable with substantially less coverage 15 or 20 years from now.
Term life insurance policies make larger amounts of coverage affordable, especially in comparison with a whole life or permanent life insurance quote for the same benefit amount. This is the biggest advantage of term life insurance, and it is the main reason so many people find term insurance to be the best option for their family. Term life insurance allows you to adjust your coverage and to some extent, control the rates you pay for the insurance you want at various points over the course of your lifetime.