Term Life Insurance is only a death benefit. If you pay the insurance premium, in the event of death while covered by the policy, the insurance company will pay the term life policy death benefit. When considering Term Life, you should first determine the length of time you need the coverage and then look at the total cost over those years.

Of all the other types of life insurance available to consumers, term life insurance is generally regarded as the most basic and inexpensive of all. It often gives you the best value for your budget. A term life insurance policy pays a predetermined monetary benefit to the named beneficiary upon the death of the insured as long as the death occurs during the policy period or "term" of the policy. Compared to other types of life insurance such as whole life, where part of the premium goes into an investment fund, no part of the premium in a term life insurance policy is used for investment purposes. The entire life insurance premium is used to pay the life insurance expense. In short, the premiums in a term policy pay for only for the direct life insurance expenses in the policy itself and there is no financial benefit other than the death benefit.

The term life insurance plan has a specific period of time or duration, usually from 5 to 30 years. Because of this, term life insurance premiums tend to be far cheaper than the whole life insurance or other forms of permanent life insurance. The policy will remain in effect for as long as the premiums are paid and only for the predetermined period of time or term of the policy. This is where "Term Life Insurance" gets its name. It is a life insurance policy constructed and maintained for a designated term or period of time.

Term Life Premiums may be based on annual renewable arrangements including:

For short term insurance needs annual renewable, 5 year level premium or 10 year level premium plans are often the cheapest. Some short term examples might be covering a bank loan or a business obligation.

For longer periods of time, the following term life plans are often the best buy:

Term policies come in many varieties as mentioned above. Most life insurance companies that sell term life insurance offer policies that can be a short as 5 years and as long as 30 years. Furthermore, there is added flexibility with these plans and policies that provide renewable term life insurance. Many consumers choose term insurance as an affordable, efficient and effective way to provide their families with the life insurance coverage security they need. Term life insurance, in this case, is not used as a long term investment vehicle.

Consumers with long term needs should be aware that if they keep a level term Life insurance policy longer than the initial level premium guaranteed period, their premiums will increase substantially or may not renew.

Term Life Insurance Note: In some states level premium term may be limited in the number of years of coverage, or it may not be available above a certain age. If the type of term life plan you request is not available in your state, LifeQuote will provide you with a quote for a term life plan available in your state that is closest to what you requested.