Term life insurance specifies a certain number of years of coverage, and if a policyholder dies within that term, a pre-set amount is paid to beneficiaries. There are no savings accrued with a term policy, unlike with a permanent policy, but premiums are usually significantly lower. Term life insurance companies offer a variety of flexible packages that can act as temporary protection for family against the death of a financial provider.

Many people opt for term insurance because they can typically walk into an agency or go online to a term company, apply for coverage, and walk away with a policy in hand. This type of immediate coverage is attractive to people who may not be able to afford permanent policy premiums, but need immediate coverage for their families or loved ones. Consumers also like the flexibility of term insurance products.

Term Life Insurance Options

Those looking for term life insurance have the ability to choose the number of years they will be covered, and the coverage amount. Typically, premiums will be locked in for the term, another attractive feature of a term policy. Many term policies are renewable for new terms even if a policyholder's health has changed. There may be a limit as to how many times a policy can be renewed or an age limit for policyholders.

Each company will vary slightly in their limitations and types of coverage. Some companies allow for a term policy to be converted into a permanent policy after a certain amount has been paid, at which time premiums will increase. Term insurance can be purchased from local agents or even online, often with no medical exam required.