There are ads for term life insurance on independent television channels all the time. They generally feature a well-known actor who is also a senior citizen, talking about supplemental insurance for people in their age bracket. The rates seem reasonable, you think, so why not call? Before you pick up that phone, however, you should know what you're really calling about. It's called term life insurance, and it works a bit differently than standard insurance.

Originally, all insurance was term insurance. It gives you coverage for a specific length of time, or term, after which you can either drop the policy or continue to pay your premiums, though they will increase every year. As with whole life insurance, if the insured party dies during the coverage term, a death benefit will be paid to their beneficiary (whomever is designated on the policy, generally a spouse or child), as long as the premiums are current. If the term ends with the insured party still alive, which is the expected occurrence, no benefit will be paid, and no premiums will be returned. This is also usual, and it happens because what you are really paying for is the possibility of something happening. Most such policies never have claims drawn against them.

Reasons to Choose Term Life Insurance

The most common reasons for choosing term life over other forms of life insurance are the insured party's age and medical history. Though you must disclose your medical history if you are asked, most term policies don't require a physical examination, so people who would not normally be insurable can still be insured. Physical conditions that preclude standard insurance include diabetes, heart conditions, morbid obesity, and being a smoker, as well as having a terminal illness. (There are cases where people suffering from terminal illnesses like cystic fibroses have managed to MAKE money on term insurance, but this is rare.)

The other common reason that people choose term life insurance is their age. The policies you see advertised on television generally target people from sixty to eighty years old, who need something to supplement MediCare. Because their age makes them unable to get standard policies, term insurance is an excellent source of protection, as it's easy to obtain and not terribly expensive.

Types of Term Life Insurance

Term life insurance comes in two basic varieties: level term, and annual renewable. At InsuranceSpecialists.com, you can request quotes for either of them.

• Level Term insurance has an initial coverage term with the same, guaranteed premium for that term, generally from ten to thirty years. The longer the term is, the higher the premium will be, because the final age of the insured party is factored into the price. Level term insurance includes a renewal option, but it isn't the main feature of the plan.
• Annual Renewable insurance comes with a coverage term of just a year, but they also have an insurability clause that guarantees you the ability to renew with the same company, or functions as proof of insurance should you choose to switch. Death benefits are paid as they are under a normal policy, during the year, but just twenty-four hours after a policy term ends, there is no coverage whatsoever. The renewability lasts from ten to thirty years, or until the insured person reaches a maximum age - usually specified to be ninety-five.

Whether you are looking for term life insurance as a supplement to coverage you already have, or as the only life insurance policy you plan to carry, InsuranceSpecialists.com can help you get a fair, accurate quote.