Term Life Insurance Quotes

Term Life Insurance Quotes:
Explained

Term life insurance quotes reflect a life insurance policy which covers you for a specific period of time, rather than your entire life. In the event that you pass away while the policy is still in effect, a lump sum of money is paid out to all of your beneficiaries.

In terms of affordability and simplicity, term life insurance is the cheapest and most straightforward option out of all forms of life insurance. Therefore, it’s usually the best choice for the majority of shoppers.

While whole life insurance policies can be expensive and quite complicated, term life insurance quotes are cheap and effective when it comes to protecting your loved ones. There are multiple types of term life insurance which are described in the article.

How it Works

As mentioned previously, term life insurance lasts a specific amount of time. Most policies are sold for set period terms of 10, 20, or 30 years. You must pay premiums to keep the policy active, either monthly or annually.

If you die while the policy is still active, a death benefit (pre-set cash payment) is paid out to anyone named as your beneficiary. Once the term ends, the policy expires.

Here are some quick facts to remember when comparing term life insurance quotes:

Lasts between 1-30 years

Includes guaranteed death benefits

No guaranteed cash value

Premiums can remain level or increase periodically

Pros & Cons

Click on the Pros and Cons tabs below to help decide if Term Life insurance is right for you.

Why Buy Term Life Insurance
    • Cover short term debts

 

  • Pay for long term costs such as college tuition
    • Start a retirement fund for your partner

 

  • Protect your loved ones from mortgages and student loans
Reasons Not to Buy Term Life Insurance
    • You won’t get life long insurance

 

  • No monthly premium investment savings plan
  • Lack of a cash value savings plan

Best Companies Offering
Term Life Insurance

The follow companies offer the best term life insurance quotes, and were all given A+ ratings
by the Better Business Bureau and A.M. Best:

Average Costs

Because term life insurance covers your loved ones for a specific period of time while being dependent on your income rather than your whole life, these rates tend to be much cheaper than permanent policies.

Here are some average costs:

Coverage
Term
Monthly
Annual

$ 100, 000

20 Year

30 Year

$9

$13

$105

$155

$ 250, 000

20 Year

30 Year

$13

$20

$150

$240

$ 500, 000

20 Year

30 Year

$21

$34

$240

$387

$ 1, 000, 000

20 Year

30 Year

$37

$60

$425

$695

Types of Term Life

Level term

A simple life insurance policy in which level premiums are guaranteed for the entirety of the term.

Return of premium
Money-back guarantees are offered for your term life insurance. If you outlive your insurance policy,
all premiums paid over the term are given back to you.

Mortgage Protection Insurance
Used to pay off your house if you die during the policy’s term. The insurance mirrors your owed mortgage amount, declining over time. Generally, this type is offered for 15 or 30 years, and death benefits decline to eventual expiration when your loan is paid off.

No Medical Exam
The majority of insurance policies include a medical exam because it helps the carrier asses how likely you may be to die while the policy is active. If you qualify, “no medical exam” insurance policies enable you to bypass the medical exam.

Alternative Types of
Life Insurance

Permanent Life Insurance is another main type of insurance policy. Permanent life insurance policies remain in affect for your entire life. Also doubling as a savings account, pay outs are eventually made to your beneficiaries once your life ends.

Like term life insurance, there are several types of permanent life insurance as well, including whole life, universal life, and variable life.

However, permanent life insurance tends to be much more expensive and more complicated than term life insurance, making these policies a bad choice for most people.