Group term life insurance is oftentimes offered as part of an employer-sponsored benefit package. Some, or even all, of the premium for group term life may be paid by the employer. This type of coverage doesn’t usually require underwriting, so even those who have adverse health conditions can qualify. If an individual / employee leaves their employer, they may not be able to take this coverage with them.

When an insured dies, his or her beneficiary(ies) file a claim with the insurance company. A certified copy of the insured’s death certificate is typically required as proof of the insured’s passing. In most states, an insurance company will have 30 days to review the claim, during which time they can pay or deny the claim or request additional information from the beneficiary.

The length of coverage on a term life insurance policy can be as little as just one year, or as long as 30 years, depending on the policy and the insurance carrier. The duration of the insured’s financial obligations should be considered when deciding on an appropriate coverage length of term life insurance.

The proceeds from a term life insurance policy can be used for any need that the beneficiary sees fit. Oftentimes, term insurance is purchased to cover specific financial obligations of the insured, such as the payoff of a home mortgage.

At the end of a term life insurance policy, the insured may be able to renew their coverage. If this is the case, the new premium will be based on the insured’s then current age and health condition.

There are many term life insurance policies today that allow the insured to convert the coverage over to a permanent life insurance plan – and they may be able to do so without having to go back through the underwriting process or take a medical exam. Depending on the insurance carrier and the policy, term conversion should usually take place before the insured reaches the age of 70 or 75.

In some cases, if the insured had a return of premium option on their term insurance policy, he or she will receive the money back that they had paid in as premiums. (This rider typically requires an additional amount of premium).

Term insurance is a life insurance policy that lasts for a defined length of time. When you buy term life insurance you choose a term length before you apply for a policy. Most life insurance companies offer term polices for 10, 20 and 30 years. Once you apply for a policy and get approved you lock in your premiums and death benefit for the length of time you chose when you applied.

Finding the best term life insurance policy is not difficult if you have a good independent life insurance agent. When you choose an independent agent they will be able to help you find the best option for your individual situation. An independent agent will be able to shop multiple life insurance companies for you. They will also make sure you can qualify before you apply.

Term life insurance provides death coverage for a set period of time, such as ten, twenty, or even thirty years. If the insured passes away while the policy is in force, benefits are paid out to a named beneficiary (or beneficiaries).

The premiums for term life insurance are typically lower than those of a comparable permanent policy – at least initially. This is particularly the case if the insured / applicant is younger and in good health. Term is considered to be the most basic form of life insurance coverage.

With a convertible term life insurance policy, the insured is allowed to “convert” their term coverage over to permanent life insurance. Oftentimes, the insured is not required to undergo a medical examination in order to qualify for the new plan.

While term life insurance does not offer a cash value component, there may still be a way to get cash from this type of coverage. One option is to sell the policy via a life settlement. In a life settlement transaction, the policy owner transfers the ownership of the policy over to a third party in exchange for an immediate sum of cash.

The new policy owner also becomes the policy’s beneficiary and continues to make premium payments. If the insured dies while the policy is still in force, the death benefit is paid out to the new beneficiary.

Typically, good candidates for life settlement transactions are at least 65 years of age and have certain health conditions. The face amount of the policy is oftentimes required to be at least $100,000 or more.

The best type of life insurance depends primarily on the needs of the insured, as well as on their budget. For example, term life insurance is typically recommended for shorter-term needs, such as covering a home mortgage or ensuring the funding of a child’s college education. Term insurance can also provide a way for people to purchase coverage for little premium outlay.

Whole life insurance – which is a form of permanent coverage – is usually best for those who have longer-term needs. That is because, as long as the premium is paid, the coverage will remain in force. The cash value that builds up inside of a whole life insurance policy can be accessed for various needs, either by withdrawing or borrowing the funds. Many people use whole life insurance to cover estate planning and / or final expense obligations.