Fort Myers, Florida Term Life Insurance

What Is a Term Life Insurance Policy?

Term life insurance is a type of life insurance policy that has a specified end date, like 20 years from the start date. The death benefit will only be paid out if the insured dies during this time period. This is the amount of money that will be paid to the beneficiary when the insured passes away, and it can be issued in a variety of ways, such as a lump-sum payment or as annuities.

The most common type of term policy is a level term policy, which means that the value of the death benefit stays the same for the entire time your policy is active. The benefit can also be decreasing, meaning it shrinks over time, typically in one-year increments.

Some term policies can also be converted to a permanent life insurance policy without a medical exam, like whole or universal life insurance, once the term is up. However, once converted, those permanent life policies are more expensive.

Renewability is another potential feature of term coverage, which means that some insurance carriers may allow you to keep the policy in force past the initial time period you selected without undergoing additional underwriting or medical exam processes