Term Life Insurance

Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years. If you, the policyholder passes away during this term, the beneficiary receives a death benefit. If the term expires while the policyholder is still alive, there is no payout, and the coverage ends unless renewed or converted to a permanent policy.

Determining the appropriate coverage amount depends on various factors, including income, debts, living expenses, and future financial obligations like children's education. A common guideline is to have coverage that is 10 to 12 times your annual income. However, personal circumstances may require adjustments to this estimate.

Premiums are primarily based on age, health, lifestyle habits (such as smoking), and the length and amount of coverage. Generally, the younger and healthier you are when purchasing a policy, the lower your premiums will be.

Many term life policies offer a conversion option, allowing you to convert your term coverage to a permanent policy without undergoing a medical exam. This option can be beneficial if your health changes or if you decide you need lifelong coverage.

If you outlive your term, the policy expires, and there is no payout. Some policies offer a return of premium rider, which refunds the premiums paid if the policyholder survives the term, though this option often comes at a higher cost.