Life insuranceEverywhere you look, someone or something is telling you that you need term life insurance.  Needing term life insurance is one thing, but understanding the aspects of what term life insurance is another.   Understanding exactly what you’re getting is the key to and life insurance plan.

Term life insurance policies build no cash value.  They are not like whole life insurance where they may gain interest over time.  The benefit is only paid if you die during the term of the policy coverage.  If death does occur, the beneficiary only collects the face amount of the policy income-tax free.

Term life insurance policies’ premium rates for renewal generally increase at the end of the guaranteed policy period.  They may also require you to furnish evidence of insurability at renewal to qualify for specific rates.  Some term life insurance policies can be changed or converted to a whole life policy.  It is important to check the conversion privileges before you purchase a term life insurance policy.

If you think a term life insurance policy is right for you, contact your local insurance company today.