5 Facts to Know About Term Life Insurance

Here are five quick facts you should know about term life insurance.

Laura Adams, MBA
1-minute read

5 Facts to Know About Term Life Insurance


Since September is Life Insurance Awareness Month, take a moment to see how life insurance can be a smart move to protect your family.

Here are 5 quick facts about term life insurance that you should know:

Fact #1: Getting term coverage is easy. You can compare insurance prices from many top insurers at once when you use online sites that aggregate quote data.

Fact #2: Term coverage is for a limited period of time. You pay a level premium for a set period of time, such as 20 or 30 years. If you die during the term, your beneficiaries receive the death benefit.

Fact #3: Term life is a good planning tool. A term policy gives you confidence that during a certain period of time, your family could handle potential expenses that will eventually disappear, such as paying for college or a mortgage. 

Fact #4: A term policy is inexpensive. Compared to a permanent policy—which pays a death benefit no matter when you die—term coverage is very affordable. That means you can get more coverage to protect your family when they’ll need it most.

Fact #5: You can get your term premiums back. Many term policies allow you to add a feature called Return of Premium (ROP). If you live to the end of the term, 100% of the premiums paid will be returned to you.

More Links You Might Like:
Life Insurance Basics
7 Tips to Buy Life Insurance
Tips to Simplify Your Personal Finances
Should You Buy Permanent or Term Life Insurance?

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About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.