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What is Term Life Insurance 2016

Term Life Insurance 2016

Term Life Insurance-Term life insurance in 2016, is life insurance that will last for a specific number of years.  Most companies will allow you to choose a 10, 15, 20, 25, or 30 year term.  The longer the term the more expensive the premium.  At the end of the term the policy will either terminate or it can usually continue on, but a much higher cost than before.

Term life insurance will cover you if you pass away, the life insurance company has to pay the out the money to your beneficiary.  A life insurance policy is a contract, so generally as long as you aren’t subject to one of the exclusions (typically there are 2 exclusions on life insurance policies; typically a two year suicide clause and a two year contestability clause if there wasn’t misrepresentation or concealment on your application) it will pay out.  Also, there isn’t usually any time period if the policy was procured by fraud.  Life insurance companies do not want the reputation that of not paying out claims, it’s bad for business.  So, if you don’t commit suicide in the first 2 years or lie on your application you are good, the company will pay out the money.

Also, the great thing about life insurance policies is that they are unilateral contracts, meaning that you can cancel the policy any time you like (similar to auto insurance) or simply stop making the premium payments.  However, the insurance company is required to pay the death benefit as long as you paid your premiums.

One of the most common questions in life insurance is “What is term life insurance?”  I have wrote an article here that explains the different types of life insurance.

Also, the next question is usually “How much is it going to cost me?”  You can click here to see how much term life insurance costs for different amounts of coverage and lengths of term.