Term life insurance is known as the “original” form of life insurance. Basically what term life insurance does is ensure that in the event of the death of the policy holder the family will be paid a large lump sum to make up for the loss in wages. This type of coverage is primarily used to cover whatever financial obligations the policy holder would no longer be able to fulfill such as education, funeral and mortgages. This type of insurance works by providing the holder with the selected coverage for a specific term that is chosen with their life insurance agent. When the term of the selected coverage period is up, the policy holder needs to re-sign for an additional contract if he/she chooses to do so.

Term life insurance can be done on an annual basis or every 5,10, or 15 years. Policy terms and contracts differ between life insurance agencies but generally the years of coverage are up to the consumer to determine. Term life insurance is based on the use of fixed premiums. A fixed premium means that over the life of the policy payments are fixed and do not change. These payments can be made on varying increments, and are again determined by the policy holder and the life insurance agent. The payments are usually determined by the length of the policy but can be made monthly, quarterly, semi-annually, or yearly.

Payments on a policy can be discontinued if the holder chooses to do so and the policy will then be cancelled with no obligation to continue or resign for another policy. At the end of the term the coverage is gone. If the policy holder happens to die a week after their coverage was ended, the family will receive no benefits and it would be as if the deceast had never had cover to begin with. It is important to understand that just because you had life insurance does not mean you will still have any of the benefits from it after the life of the policy has expired.

You do not have to be a primary bread winner of your household to obtain term life insurance. Life insurance is one of the simplest and cost effective ways to make sure your family is provided for in the unfortunate case of your death. It is well worth the time and money to be able to go to sleep at night in peace knowing that if anything ever happens to you your family will still be taken care of. I am interested in doing more work with you in the future.

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