About Term Life Insurance

What is Term Life Insurance?

Term Life Insurance is about providing temporary life insurance protection for your loved ones and providing you with the peace of mind you seek.

Temporary Life Insurance is available for terms of 1 to 30 years, though the most popular terms are the 20 and 30 year terms.

You pay a premium and if you were to pass away during the term you have chosen, the beneficary or the person you chose to leave the money to, will be given a check by the Term Life Insurance company.

Term Life Insurance is the simpliest form of life insurance to understand and purchase, however there are different variations that you should be made aware of.

If you sign up for a low cost term life insurance plan, make sure you understand if it’s renewable.

That means after your term ( 10/20/30 years) ends, are you able to renew the life insurance policy or convert it into a permanent life insurance policy?

This is certainly an important aspect of the decision making process to take into consideration.

If you have a 30 year term life insurance policy, and after your 30 years are up, you still need coverage–you DO NOT want to have to go through underwriting again.

About Term Life Insurance Types

Non-Med Term Life Insurance

When you apply for a cheap Term Life Insurance policy, a part of the application process is the Paramed Exam.

A nurse comes to your home or office, and takes your blood, maybe urine and some basics tests like blood pressure.

They send the results off to the Term Life Insurance provider and they use the information from your exam and your medicals records and of course the answers you supplied on the life insurance application and then the life insurance company will offer you the coverage you applied for at the rate you qualify for, once all your medical history is verified.

With a non-med or no medical exam term life insurance policy, you do not need to have a nurse come to your home or office to take your blood.

Many consumers like this option because some are afraid the nurse will find something that will jack up the rate sky high.

What you need to know is that with a non med term life insurance plan you are paying a significantly higher premium, just so you don’t have to take an exam.

Keep in mind that the term life insurance provider you’ve applied with will still check your medical records and request a statement from your physician about your general health if they have any further questions.

Return of Premium Term Life Insurance

Many term life insurance carriers offer an add on benefit called a “Return of Premium or ROP” rider.

The way it works is if you made your premium payments for the full term, be it 10-20-30 years, then the life insurance provider would return your premiums to you.

We believe humbly that this is a waste of your premium dollars.

Most consumers do not stick with the same Life Insurance company for the full term, we all are constantly shopping for better rates, so you end up wasting a lot of money on ROP rider’s that you will probably never benefit from.

It would be a better use of your money to either purchase a permamnent life insurance plan in addition to your term life plan or maybe even use the money to get a higher Death Benefit.

In fact expect to pay 400% more to have to Return of Premium rider than without, you can see it isn’t a good deal just based on that right?

How to know if a term life insurance policy will be best for you and your family.

An affordable term life insurance policy does not accumulate cash benefits like a permanent policy would such as a universal or whole life insurance policy would.

If you’re young and healthy your may need protection to cover your mortgage while your children are still young or maybe you just want something simple that’s not overly complicated and easy to get issued then term life insurance is for you.

However if you’re concerned about investments in London, taxes -your future estate planning. Then you will want look at a permanent life insurance product like a whole life or universal life insurance policy that would help address those specific needs

Facts about Term Life Insurance

Smoker rates are about 400% higher than non smoker rates. The rates are higher for a reason, tobacco products literally destroy your body much more quickly than the natural progression of old age.

So the risk to the life insurance carrier is so much higher, they naturally have to charge smokers more.

Remember it’s not discrimination, Term Life providers are in the business of selling Life Insurance, they want you to buy a policy, however if your health makes you a higher risk (bigger chance they will pay out while your still on the books) then they need to charge you a higher premium.


Term life insurance rates are based on your health and age at time of application.

Unlike health insurance premiums that go up 15, 20 or even 30% every year, term life insurance rates for the most part stay level for the duration of your term.

It’s pretty nice actually you don’t have to worry about your rate getting jacked up every single year because your coworkers or your neighbors are not as healthy as you are.

Your family’s health history plays a part and how a term life insurance carrier will underwrite your application.

If your family has a history of cancer or heart issues, like mine, you can expect to pay more because there’s a good likelihood of course not guaranteed, but a good chance you will have issues.

Of course an affordable term life insurance policy, doesn’t pay for hospital bills but some plans come with the riders or additional benefits such as a critical illness rider that would basically payout if you had a heart attack, stroke, cancer, things of that nature. Even if you did NOT pass away.

Even if you’re not in the best of health there still is a likelihood that you can get a life insurance policy.

Granted, your rate will be higher than if you would qualify for in the prime of your life, but the main point to consider is that you have coverage and your family that you’re going to leave behind won’t be burdened by a mountain of bills.

One example of a life insurance policy that you could get if you are sick or going to seek treatments for a major condition is called a graded benefit life insurance plan.

A general example of how this kind if life insurance policy would work, let’s say you bought a graded benefit life insurance plan from Acme life insurance company.

They may say there is a one-year waiting period before any death benefits will be paid out.

So you would pay for 12 months of premium, and on the 13th month, if God forbid you passed away your beneficiaries would be cut a check.

Consult a local life insurance agent if you are considering a graded benefit life insurance program, because you may qualify for a full coverage underwritten life insurance policy which would be your be in your best interest to investigate before signing up for the graded benefit life insurance plan.

Purchase your life insurance from a life insurance company and your health insurance from health insurance company.

We’ve recently spoken with some clients who purchased life insurance from their auto insurance agent such as a State Farm or Allstate agent.

What we have found out is that when you purchase a life insurance or even a health insurance plan for an auto carrier who doesn’t focus 100% on the insurance product that your purchasing, you usually are overpaying significantly for your life or health insurance.

Speak with a local independent agent who represents the most competitive term life insurance companies in your area so you can compare apples to apples and we are confident that once you’ve done so you’ll be happy with your decision and the whole process.