Term Life Insurance Policy

Our goal is to help you understand your Term Life Insurance Policy and to assist you in finding the most affordable quotes with top rated life insurers.

Types of Term Life Insurance Policies

Level Term

A Level term insurance policy provides premium and death benefits that remain the same or level for the life of the policy.

Decreasing Term

Decreasing term insurance provides premiums that remain the same or level, but the death benefit decreases as the term of the policy advances. This type of policy may be used used to insure large loans, such as a mortgage or business loan, where the balance of the loan decreases over time.

Annual Renewable Term

Annual renewable term life insurance policy provides a death benefit that remains constant or the same for the life of the policy, but the premiums increase at a certain age or age bracket. This may be most beneficial for short-term insurance needs lasting about five years or less.

Term Life Insurance - Coverage Explained

A Term Life Insurance Policy provides the maximum amount of face value per $1,000 of insurance cost. This allows you to control how you invest the difference between term life premiums and what you pay for Whole life that builds cash value.

A term life insurance policy is a legal contract between the owner of the policy and the insurance company.

The following information relating to a Term Life Insurance Policy is intended to provide an understanding of the coverage and is in no way to be considered the only explanation, instruction or clarification necessary for your coverage. This outline is for your use to educate you on the standard application and coverage under a Term Life Insurance Policy.

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Term Life Insurance Policy Features

Declarations Page

A declarations page provides the following - Named insured, policy effective date, policy #, name of insurer, address of insurer, date of policy issue and type of term life insurance policy.

In addition, the declarations page of a term life insurance policy usually provides a clear statement about how to make a claim for the life insurance benefit.

General Provisions

The Contract - Consists of the application, the policy, any endorsements or riders, and any application for reinstatement.
The Policy Date - The effective date of the policy. The first policy year begins on the policy date.
Owner and Beneficiary - The owner and beneficiary are stated in the application or notice of change received by the insurer.
Change of Owner and Beneficiary - The owner of the policy can change the designation of owner, contingent owner and beneficiary only while the insured is alive.
Assignment - The company will not approve the assignment of the policy to another party until it is received and accepted in the Home Office.
Misstatement - If the insured misstates their age or gender, the insurer will amend policy proceeds to that amount the premiums paid would have bought based on the correct information.
Suicide - If the insured dies by suicide within two years of the policy inception date, whether sane or insane, proceeds will equal premiums paid less any outstanding loan balances at the time of death.
Payment of Proceeds - Unless another settlement option is selected proceeds are made in one lump sum under a term life insurance policy.
Amount of Death Benefits - The amount of insurance at time of insured's death less any loan outstanding on the policy, less any premium due to keep policy in force until end of month of death.
Premium Payments - Premiums are based on the class used for the insured at inception of policy. The policy owner can change the premium payment option with approval of the insurer.
Refund of Premium - There are no refunds unless stated in your Term Life Insurance Policy.
Grace Period - Any premium due not paid by the due date is in default. A grace period of 31 days may be provided for payment without interest. If the premium is not paid by the end of the grace period the term life insurance policy will be terminate providing no coverage.
Reinstatement - The policy may be reinstated unless the following has occurred:
1. The term life insurance policy has been surrendered.
2. The period of extended term insurance has ended/expired.
3. The loan balance has exceeded any cash value in the policy.
4. The date of reinstatement is on or after the policy expiration date.
Exchange Option - The policy may be exchanged for a new term life insurance policy by a specified date. Usually, evidence of insurability is not required unless riders are attached to the policy.
Non-forfeiture Options
1. Policy Surrender - Owner surrenders the term life insurance policy and receives the net cash value less any loan balance under their term life policy.
2. Paid-up Insurance - Policy continues as reduced paid-up insurance.
3. Extended Term Insurance - Available only if Extended Term Insurance Values are shown in the Table of Non-forfeiture Values.
4. Automatic Option - Extended Term Insurance, if available, if not, paid-up insurance option.
Basis of Values - The mortality table and rate of interest shown in the Table of Non-forfeiture Values.
Policy Loans - Options include the following: Cash loan, automatic premium loan option, deferral, interest and repayment.
Benefit - Type of term life insurance policy, annual premium, premium period, expiration date, exchange date, policy #, owner, insured, issue date and initial premium of the term life insurance policy.
Table of Premiums and Amounts of Insurance - States premiums due each year and amount of coverage in your term life insurance policy.
Option To Pay Up Term Life Insurance Policy - The owner may choose to pay up the policy if the insured is living and the policy is not continuing under a non-forfeiture option. The amount of coverage that can be paid up is that amount applicable to the policy on the policy anniversary date. Once paid up no more premium payments are required.
Accelerated Death Benefit Rider - If the owner provides written request to insurer for accelerated death benefit and provides evidence that the insured's life expectancy does not exceed 6 months. This benefit is treated as a lien against the primary death benefit.
Application for a Term Life Life Insurance Policy - A signed and date copy of the application for coverage is attached to the Term Life Insurance Policy.
Settlement Options
1. One sum - One lump sum of the death benefits.
2. Fixed Period - Benefits paid over a fixed period.
3. Life Income With Installments Certain - Payments made in equal installments over a specified period of time. After the specified period ends payments continue throughout the payee's lifetime.
4. Interest - Interest on the death benefits is paid as agreed upon when the option is payment selected.
5. Fixed Installments - Payments made on set installments until all proceeds and interest are fully paid.
6. Single Premium Annuity - Death benefit is applied to purchase a single premium annuity offered by the insurer.
7. Other Options - Settlement may be applied in any other manner mutually agreed upon by the insurance company and the beneficiary.
Get A FREE Life Insurance Quote Now

Recommended - Net Coverage
If you are healthy you may Qualify online for up to $500,000 of term life insurance with no medical exam, just some health questions. "A" rated life insurance company. 30 day money-back guarantee. If you qualify, you may start your life insurance today. Get a free quote.

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