What is term life insurance?
Definitions and Vocabulary
There are many different life insurance products on offer these days, and their sheer volume can be overwhelming. One of the most common things people look for is term life insurance. There are many different types of term life insurance and many different companies that offer it. For example you can get AARP term life insurance, TIAA Cref term life insurance, and many more. So what exactly is term life insurance?
Term life insurance provides you coverage if you should die in a given number of years, thus the term. These products are often used to supplement whole life insurance, and can provide extra protection for your family during the years that you would still be working. There are a few different components to term life insurance you should know about.
The first thing that is important to understand are the term life insurance terms. The term is the period of time your policy will be active. The term can be shorter or longer depending on the products you are looking into and your specific needs. Typical terms range from 5-30 years, as term life insurance policies are designed to cover the period of time when you would be working and your family would be counting on that income.
Term life insurance offers a different array of coverage options depending on your needs. You can find plans from as low as $5,000 all the way up to million dollar policies or more. The amount of coverage you get and the term your coverage applies to will affect the final aspect of term life insurance: the rate.
The rate on your term life insurance policy is the amount of money you pay each month to keep your policy active. Therefore it is in your interest to get the best term life insurance rate possible so you can provide the most coverage to your family for the smallest amount of money.
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