Features

• Term Life Insurance can be renewable and convertible (usually expressed as R&C), or it can be non-renewable and expire at the end of its original term period. The length of the renewal period varies but is typically between ages 75 and 85. The conversion option allows the policy owner to change the term insurance into permanent, and is usually available until age 65.
  
  

Types

• Renewable term life insurance starts out with a guaranteed premium lasting to the end of a predetermined period, or "term." The more typical terms are 5, 10 and 20 years. At the end of the term, the premium increases and is guaranteed for a new, similar term. The policy continues to renew with an increased premium at the end of each term, until the policy reaches its expiry age and the coverage terminates. Term life insurance is also typically offered on a "term to age 65" and "term to age 75" basis, where the premium is level and guaranteed to the end of that period.
  
  

Benefits

• Life insurance pays you when you need it most.money makes money image by Andrey Andreev from Fotolia.com
  
  Term life insurance provides low-cost life insurance protection compared to more permanent types of insurance products. Premiums are typically guaranteed, with the initial and future renewal premiums and payment periods spelled out in the policy contract.
  
  The convertibility feature allows the policy owner to exchange their term policy for a permanent policy, usually before the insured reaches the age of 65. The advantage of this feature is that the exchange is done without the insured having to provide evidence of good health to the insurance company.
  
  Generally, death benefits from life insurance policies are tax-free when paid out in a lump sum.
  
  

Function

• Protect the things that matter most.happy family in front of the home image by Galina Barskaya from Fotolia.com
  
  Term life insurance should be used to meet a financial need that will disappear over time. Examples of such needs include protecting the mortgage, providing financial support to the children before they reach adulthood, or replacing a lost income due to an untimely death before reaching retirement.
  
  Businesses also use term life insurance when wishing to protect against the loss of key executives. Typically these executives are in their 40s or 50s and a simple "Term 10" or "Term 20" policy is sufficient to meet the needs of the business.
  
  

Considerations

• A licensed agent can help with the many choices available.business 3 image by Nathalie P from Fotolia.com
  
  Consult with a licensed insurance agent who will conduct a thorough financial needs analysis before purchasing any type of life insurance.
  
  It is also a good idea to do some homework. Several websites offer term life insurance price comparisons and show the wide diversity of coverages and premiums available in the term life insurance marketplace.