what is term life insurance

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.

There are many options available when it comes to how long your term insurance policy should last. You can usually buy coverage for one to five years, five years, 10, 15, 20, 25, 25 or 30 year. You can get coverage that lasts one to five years and help you cover your short-term debts. A 30-year term may be better if you are the breadwinner and need a policy that covers your mortgage. These policies may not be needed as often as you would like.

This policy has a higher premium than a traditional policy that includes a health exam. Your evaluation may result in coverage caps ranging from $25,000 up to $300,000. Simplified issue insurance can be written depending on the policy. It may be for whole or term life coverage.

Term life insurance refers to a type life insurance policy that has a specific end date. For example, 20 years after the date of inception. Only the policyholder who dies within the specified term will receive the death benefit. The death benefit is money that the policyholder leaves behind to pay the beneficiary.

You may have less life insurance options as a senior due to your age and current health. There aren't any restrictions if you're younger than 70 and in good overall health. As some insurers have restrictions on the age that can purchase a specific product, it may be necessary for you to look at a larger range of companies.