Term life insurance policies offer coverage for a specified amount of time, typically anywhere from 10 to 30 years. Term life insurance offers a death benefit, which is intended to help your beneficiaries replace your income if you pass away. For example, the money can be used to help pay for things like a mortgage, education costs or everyday expenses, such as groceries, and utilities. Most customers choose term life insurance policies because it provide a larger death benefit for a less amount then a whole life policy.

HOW DOES TERM LIFE INSURANCE WORK?

If you pass away while your term life insurance policy is in force, your beneficiary will receive the death benefit. If you do not pass away during the term, no one will receive the death benefit, and the premiums you pay are typically nonrefundable, unless you bought a term policy with a “return of premium” option.

WHAT HAPPENS WHEN THE TERM ENDS?

If your term policy is renewable, you may be able to extend your coverage for another term, up to a specified age. If your term policy is convertible, you may be able to convert it to a permanent life policy. Check with your agent for details on convertible policies, as the conversion typically has to happen within a specified time period.