Term life insurance is basically purchasing insurance for a particulate period of time, ‘term’, during which you pay the annual premium. The set period of time can vary between five years, ten years and twenty years or sometimes even thirty years. If you have died before the insurance policy period has ended then the beneficiaries will get the full benefits of it. However, if you are still alive at the end of the insurance period then you will not get any benefits and the premium paid will not be returned back to you. So what makes this type of insurance different from the other one? And should you opt for this insurance?
Term life insurance is far cheaper than the permanent life insurance in terms of the amount of annual premium paid. These premiums are fixed and do not usually change over the period of time. The premium varies from person to person depending on their age, health and the extent of healthy lifestyle they have. So if you are in your fifties or sixties then you are more likely to have increased health problems which mean that you will have to pay a higher amount of premium.
In most of the cases, people over the age of sixty five are not offered term life insurance but it can be converted to whole life policy in some cases. You can do this by getting insurance quotes like 20 year term life insurance quote. The problem with term life insurance is that it is only available for a specific period of time after which your premiums are most likely to go to waste. For this reason, most of the people in their old age prefer permanent life insurance over term life insurance so the latter does not expire.