Agent, Rural Mutual Insurance Co., Union Grove, WI
By the wording of the question, I would assume that it means the amount of time that the policy will remain inforce if the premiums are paid as per the policy agreement. This would typically be part of a term policy which normally run 10, 20 or 30 year terms. Please remember every policy is diffent. Read your policy completely to understand the coverage and the exclusions or call your local agent to discuss the policy coverage and exclusions.
Co-Founder, Coastal Financial Partners Group, California
Life insurance products have evolved into many different forms offering new features and benefits but all the types can be categorized into two basic ones: term and permanent.
Term life insurance is for short term needs. They "self terminate" meaning that you buy term for temporary needs. It is likely to expire before you do. You can select a level premium for specific time period such as 10 or 20 years and at the end of that time you would need to look for something else if you still need the coverage and are insurable. Some term products may extend beyond the initial period but at astonishingly high rates that only uninsurables would accept.
Permanent - cash value - life insurance is designed to not be outlived and will last for a lifetime provided the required premiums are paid for life (whole life) or do not lapse due to insufficient cash values (universal life). For permanent needs select permanent life insurance.
Consult with a life insurance professional who can show you the pros and cons of each.
Coverage length means the length of time that your life insurance policy will stay in effect. Usually, the coverage length is referring to how long the policy will stay in effect at a level premium (level meaning the premium is guaranteed not to go up). The coverage length assumes that payments are made on time and if a policy loan is taken, that it is repaid per policy guidelines.
The coverage length on a life insurance policy has a bit of a different meaning based on the type of policy. On term life policies the length of coverage refers to the time period that the premiums are level and guaranteed not to increase. For example a 20 year level term's coverage length is 20 years at a set premium. After the 20 years, the premiums will increase exponentially. The coverage length on a cash value policy is the time period when the policy endows. For example the cash value meets the face amount at a predetermined age the policy endows. The endowment will change if any loans are ever taken against the policy.
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Term life insurance is for short term needs. They "self terminate" meaning that you buy term for temporary needs. It is likely to expire before you do. You can select a level premium for specific time period such as 10 or 20 years and at the end of that time you would need to look for something else if you still need the coverage and are insurable. Some term products may extend beyond the initial period but at astonishingly high rates that only uninsurables would accept.
Permanent - cash value - life insurance is designed to not be outlived and will last for a lifetime provided the required premiums are paid for life (whole life) or do not lapse due to insufficient cash values (universal life). For permanent needs select permanent life insurance.
Consult with a life insurance professional who can show you the pros and cons of each.