Term Life Insurance

Term life insurance is a type of life insurance usually used only for a short period of time and consists of "pure" insurance on your life for a specified term, usually a period of one to five years. If you outlive the stated term, neither you nor your beneficiaries collect any benefits. If you don’t outlive the stated term, your beneficiaries collect the face value death benefits.

Term life insurance is cheaper to buy than permanent insurance when you are younger, but the rates increase as you age. Term insurance is usually easier to acquire than permanent insurance at any age. Term life insurance is only temporary life insurance. Depending on the individual policy, however, you may be able to renew the policy or convert it to another type that is more permanent.  Be sure to find out what the terms will be if you continue to renew the policy, and if you will lose the right to renew the policy at some age.

If you are considering getting or changing your life insurance, Rocket Lawyer can help you find an affordable policy that meets your needs.  Just submit your information at our Life Insurance Center and one of our specialists will contact you.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.