Low Cost Death Benefit Protection

Term life insurance pays a specified face amount (i.e., death benefit) if the insured dies during the policy term. The policy term is usually specified as a number of years, such as 10 or 20, or to a specified age, such as age 65. If the insured outlives the specified period, the term life insurance contract expires, usually with no residual value. Term insurance has no cash value.

The most common term policy is a level term policy.  Level term policies have premiums and death benefits that are guaranteed to remain the same for the specific policy duration.  Two other less common term policy types are called Annual Renewable Term (ART) or Return of Premium Term (ROP).

Many term insurance policies include a convertibility provision. Convertibility allows a policy owner to replace term coverage with permanent coverage, for the same death benefit at the same underwriting classification as their term policy, without showing evidence of insurability.  Conversion typically must occur within a specified number of years no greater than the length of the term period.