term life insurance policy

A life insurance contract is a contract between you, the insured company. In return for regular payments (called premiums), the insurer pays money when you die. This payment is made to the beneficiaries you have chosen, usually your children, spouse, and other family members. This can act as a safety net for anyone who is financially dependent on you. Beneficiaries can use the money for repayments, to replace your income, and to fund future expenses, such as college tuition.

Convenience. Simplified insurance is an option if you don't wish to have to go through a medical exam. A recent survey found that 47% Americans prefer life insurance with a simplified process.

According to the National Association of Insurance Commissioners (NAIC), some term policies can also come with a return of premium features. That means that if a death benefit isn't paid out by the end of the term, you'll get back all or part of the premiums you paid. However, this is a more expensive option.

While price is an important factor in deciding the right life insurance policy for you and your family members, it is also very individual. Rates can vary depending on the term length and coverage you choose, as well as your age, gender and health. You can use our term insurance premium calculator to determine how much you will pay for a policy of term life insurance. The final premiums you pay may be slightly higher than the estimates.

There is a product called "no medical exam term insurance" where the quotes are determined based on your age (usually five years such as 50-54). These products have a one-year term and the premiums go up each year you are in a new age group. This makes them more expensive over 15 to 20 years.