What is Term Life Insurance?
The least expensive of most policies, term insurance is exactly what it sounds like. Its is life coverage for a specific amount of time. They are usually sold as a 5,10,15,20, or 30 year term. However, some companys have Term to 100 product avaialble. The longer you lock in your rate for, the more you stand to pay, and that is because Many term policies are renewable, which means they are renewed without health report or physical, until the insuredreaches a certain age.
You can purchase as little as $25,000 and as high as $10,000,000 in death benefit coverage. Though it said you should purchase five times your annual income, you should have enough coverage as needed. To figure out what is your personal coverage need is you'll need to calculate all your debt and liabilities and factor in what you need to keep your family in a lifestyle they are acustomed to in the event you pass away prematurely.
Because there is an increased risk of death and/or health conditions at a higher age, renewal premiums will also be higher. With most term policies you can convert your Term Life coverage into a different type of policy,such as whole life or UL product.