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Term Life Insurance

Term life insurance is a popular type of life insurance because it usually has the most affordable rates and it’s simple to understand. You make regular payments called the “premium,” to help ensure your beneficiary can be paid a fixed amount when you die. This type of insurance can provide financial protection to help make your family’s future more secure, or it might simply help cover your final expenses. You may be surprised at the affordability of your term life insurance options, and how easily you are able to protect your loved ones — even when you’re over 50.

What is term life insurance?

The most important thing to understand and remember when buying term life insurance is that its name, “term,” means a period of time. The coverage ends when you reach a certain age or the end of the “term.” Unlike whole life insurance, term life usually has no cash value. Some term policies can be converted to permanent life insurance, otherwise known as whole life, in order to continue protection after term life insurance ends.

When you purchase term life insurance, your premium will be determined by such factors as your age, coverage amount, gender and medical history. Initial premiums are usually lower than those for permanent life insurance, and increase over time.

Why should I buy term life insurance?

One very compelling reason to buy term life insurance is that term life insurance rates can be initially lower than whole life rates. You may find that term life insurance offers you the best level of financial protection for the price. The cost and simplicity are both appealing. Although there is typically no cash value, a term life policy can be worth the tradeoff — it can pay out a lump sum of cash later, for a lower initial premium now.

In fact, some people own several term life insurance policies. Or they may supplement a whole life policy with term life. Supplementing with a term policy can give you an extra cushion to help your family cover any number of unforeseen expenses, depending on your needs and budget. A $10,000 term life policy could be all you need to help cover final expenses. A $25,000 or $50,000 or $100,000 life insurance policy might help:

  • pay debts you leave behind
  • meet your family’s living expenses
  • pay the mortgage or rent and utilities for a while

Is term life insurance hard to get?

While some policies require in-depth underwriting, there are other term life insurance policies that don’t require a medical exam or blood work. Many adults over 50 qualify for no medical exam life insurance, so your age doesn’t have to be a barrier. In fact, the process to apply can be quite simple. Usually, you just provide some basic health information and answer a few questions on the application. Most providers today offer the option to apply online or directly by mail. You can also call or go online to request an information kit that should answer all your questions. You may want to gather a few different term life insurance quotes to compare features and prices.


This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial, or accounting advice. Please consult your own professional for advice specific to your circumstances.

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