Agent, Rural Mutual Insurance Co., Union Grove, WI
A term life insurance policy will typically only pay out if the insured were to pass away before the end date of the policy. Term life insurance policies are typically sold in ten, fifteen, and twenty year increments. Remember every policy is different. Please read your policy completely to understand the coverage provided and any exclusions that there may be or contact your local agent to have them go over the policy with you.
Term life insurance pays out upon death of the insured person. Period. Since there is no cash value to term life insurance, you cannot surrender the policy for cash, and it will not endow like Whole Life does. It costs less because it offers pure death protection without any investment feature. Therefore, it only pays out upon death of the Insured, as long as the policy is in effect at that time.
The basics of this question have already been answered so I want to add a different perspective.
Of course, term life insurance pays upon your death if your within the term. There are now term policies which have what we refer to as living benefits. That is, you get access to a percentage of the death benefit when you have a heart attack, cancer, stroke (& more) as well as chronic illness situations which we refer to as long-term care type needs.
So consider, your term policy now pays upon death, pays when a covered critical illness is diagnosed & pays to when long-term care like needs come up.
And the cost in many cases is the same as your straight simple term life insurance policies. If you would like a quote or more information, contact your agent or contact me.
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Of course, term life insurance pays upon your death if your within the term. There are now term policies which have what we refer to as living benefits. That is, you get access to a percentage of the death benefit when you have a heart attack, cancer, stroke (& more) as well as chronic illness situations which we refer to as long-term care type needs.
So consider, your term policy now pays upon death, pays when a covered critical illness is diagnosed & pays to when long-term care like needs come up.
And the cost in many cases is the same as your straight simple term life insurance policies. If you would like a quote or more information, contact your agent or contact me.