Term Life Insurance Basics

What is term life insurance?



This product is a very basic one, however you need to know the in's and out's of this type of policy because there are definite differences.



When asking yourself what is term life insurance, there are a few key things to ask. Term life insurance policies are by far the cheapest form of life insurance--at least in the beginning. In this case, a 40-year-old, non-smoking male, may pay $2,500.00 a year for a whole life policy with a death benefit of $250,000.00. However, the same policy in term form may only cost $300.00 per year. However, the whole life policy premium never increases over the years and also carries a cash build-up which can be used or borrowed at any time. The premiums on the term policy will increase as the insured grows older. For instance, when the 30-year-old male has his 70th birthday, his term life rates for that same term policy may be $12,000.00 per year, instead of the paltry $300.00 when the policy was first ordered.