What Is Term Life Insurance?

What Is Term Life Insurance

Definition

Term insurance is the least expensive way to purchase a substantial death benefit over a specific period of time. If the insured dies within that period of time, the death benefit will be paid to the beneficiary.

Insurance coverage is provided at a fixed rate of payments for a specified period of time, the term. After the term is over, the coverage ends.

Advantages of Term Life Insurance

• Generally lower cost than permanent insurance.
• Offers higher coverage at a more affordable price.
• The cost for Level Term Life Insurance stays the same over the life of the plan and is the most common type of term product.
• QualityTermLife only quotes Level Term plans because they give you, our valued customer, the most coverage for the lowest cost - up to 30 years.
• Ideal for younger families when the need for protection is greatest.
• Choose Term Life Insurance for covering specific needs that will disappear with time, such as:
  • Mortgage protection
  • Income replacement
  • Financial security for dependents
  • College funding
  • Final/burial expenses

Who Buys Term Life Insurance?

Term life insurance is recommended by every financial guru, including Clark Howard and Terry Savage.

Once basic items such as shelter and food are covered, these financial experts advise that life insurance should be next on the list of priorities.

The typical profile of a life insurance owner is someone who is a family breadwinner and has minimal savings. For a person in this situation, term life insurance becomes essential.

Reasons can vary, but you might ask yourself, what the immediate impact be on your family if you weren't there tomorrow to support them:

• Is the family counting on your paycheck in the years ahead to cover basic needs and future savings goals?
• Could they afford your funeral costs?
• Who would pay the home mortgage?
• Would your family be able to live comfortably without you?

Term Products Compared with Other Types of Insurance

Other types of life insurance include permanent life insurance: such as whole life, universal life, and variable universal life. Unlike term products, these plans guarantee coverage for the entire lifetime of the insuree, but at considerably greater cost.

If you are interested in finding out more about permanent life plans, speak with a QualityTermLife advisor who will be able to help you find the most affordable plan that meets your needs.