What is Term Life Insurance and How Does it Work?

A Quick Guide on Term Life InsuranceTerm Life Protection

Simple questions, right? What is Term Life Insurance and how does it work? In general, people are not comfortable discussing with their family and loved ones about what may happen in case of death. While this is not a problem in itself, it’s important to ensure the safety and well being of your family in the event that you are no longer there. With term life insurance, the beneficiaries left behind can have their needs taken care of; it’s reassuring to know that they will stay safe even in your absence.  Your family can remain in their home, your children’s education will be covered or you can give a charitable contribution to an organisation dear to your heart.

So what is Term Life Insurance and how does it work?

Term Life Insurance in its simplest form provides coverage over a specific time period (which is the ‘term’). The coverage periods of term life insurance may range from 1 to 30 years with the most common being 10, 15, 20, 25 or 30. On the death of the insured individual, the stated beneficiary receives a set amount as stated by the terms of the policy.  You will want to use the term life insurance calculator to see how much insurance you will need.  Remember to include all debts including mortgages, car loans and credit debt in to your coverage needs calculations.

Term Life Insurance Advantages

  • Guaranteed level of coverage for a Guaranteed term period at a Guaranteed premium.
  • Very affordable for younger people who are seeking maximum coverage for a certain period of time.
  • Renewable term periods.  10, 15, 20, 25, 30
  • Simple to understand
  • Affordable Term Life Insurance Quotes are quicker to generate then other types of policies

Term-Life-Insurance-Speights-Risk-ManagementTerm life insurance is very inexpensive when compared to other types of life insurance. Especially in cases where the individual involved is someone who is healthy and is below the age of 50. Term periods are renewable and the monthly premiums do not change for the duration of the term. Remember to always pay your premium on time to ensure your coverage stays in effect.


If you are not sure on the type of insurance to obtain, a good bet would be to start with term life insurance because the life insurance quotes you receive in most cases will be very affordable. You may also want to read a blog post on factors influence term life insurance rates and how it can effect your premiums. All in all, it’s best to begin by looking for life insurance quotes, so that based on your age and overall health; you can acquire the best rates possible.

Term Life Insurance Speights Risk ManagementOur family business was established over 40 years ago to help protect families & businesses by providing sound Risk Management strategies. Feel free to call us at 1-401-884-4600, contact us via email or click the Send Voicemail link at the top of the page.
This article is for informational purposes only and does not constitute financial advice.  Before purchasing life insurance, we recommend you read the policy and speak with a financial professional before making a decision.

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