Term life insurance protects you from the family’s loss of income, short-term debts, mortgage debts and pays for the college education.
Term life insurance is the most straightforward and affordable type of Life insurance because it covers for a specific amount and for a specific amount of time.
- Term Life insurance offers premiums on a monthly, quarterly and annual basis.
- Some typical terms are 10, 15, 20, 25, and 30 year terms. A policy is normally rated as smoker or non-smoker. For non-smoker rating, there are several health classes such as standard, preferred, and ultra-preferred that will be determined by a paramedical exam, and will influence the rate based on the result. The main rating factors are age, gender, health class, term, and benefit.
- Term Life insurance is a level term because the cost of the insurance is exactly the same throughout the life of the policy.