The Radical Guide to Life Insurance: Term life insurance

Term life insurance.

As the name suggests, term life insurance provides coverage and protection for a specific period of time. Periods typically last anywhere from 1 to 30 years. Should you pass away during the life of the policy you are entitled to a death benefit. But that's all.

Term life insurance is typically most appropriate for those seeking short-term coverage or alternatively those who have longer term needs but cannot afford the hefty premiums of a permanent life insurance policy. Term life policies are usually cheaper than other life insurance options -- though premiums typically increase as you age. Short-term coverage provides more flexibility while longer term coverage typically offers a better price for a given level of insurance over a given term. You can often get a better rate for longer terms because the insurance company is more comfortable that you won't switch policies during the policy term.

Table of Contents
Next Chapter