New answer on: How Does Term Life Insurance Work?

By: Gary Lane

Gary Lane — Fri, 22 Nov 2013 21:58:59 +0000

Term is Temporary Insurance. It is for a specific number of years and then ends and you must start all over again. For this reason you may be best off with Whole Life, which is permanent life insurance and builds up cash value. It costs more at the start but after 3-4 years, starts saving most people money. Give me a call and we can talk the specifics on what may be better for your personal needs.

By: Peggy Mace

Peggy Mace — Mon, 18 Nov 2013 18:48:52 +0000

Term life insurance takes all the premiums you pay for your policy, and applies it toward "pure" life insurance protection. That means that the only purpose of the policy is to pay your beneficiary upon your death (assuming you are the insured person). Period. Permanent insurance charges more so that the policy can accumulate cash value, possibly pay dividends, and (usually) stay in effect for the rest of your life. Term life insurance does not do any of those things. It charges the least possible amount so that your beneficiary will receive a death benefit if you pass away within a certain number of years.

By: Steve Savant

Steve Savant — Mon, 11 Nov 2013 22:13:08 +0000

Video Transcript:

How does term life insurance work? It's temporary. It does have conversion ability in case you want to extend it past the time that you need it, but it's actually in increments of 5, 10, 15, 20, sometimes even 30; there's a few carriers out there that actually do a 40-year term. Term is a very inexpensive way to cover financial indebtedness, future obligations for a temporary time, as well as other areas that you may want to look at, especially if you're in business. You can indemnify each other as partners. Term insurance is temporary coverage for any time period that you can actually look at, and hopefully by the time your temporary coverage is over, that all your liabilities and other issues like even funeral and final expense are already paid for through your own asset accumulation.