An Introduction to Term Life Insurance

As a regional vice president of Primerica, Andre Dobison oversees the distribution and marketing of the firm’s insurance and financial products. Andre Dobison maintains an in-depth knowledge of Primerica’s term life insurance and other coverage options.

By definition, term life insurance provides benefits to the survivors of a policyholder, assuming that the policyholder passes way within a particular period of time. The policy offers no benefits after its expiration date, although the owner may elect to renew the coverage when the policy expires. Some policies must be renewed on an annual basis, while others are valid for a multi-year period.

Annually renewable term policies are the most affordable kind of insurance at the beginning, but they may carry premium increases concurrent with the policyholder’s advancing age. This type of coverage is most appealing to those who anticipate a higher future income. Many with annual term policies use this coverage to protect their families should they pass on at a younger age, while saving in other ways for death at a later age. By contrast, level-premium term coverage protects the policyholder for a specified period and never increases in cost, regardless of the policyholder’s choice to renew. This is also a popular choice with those looking to increase their savings, but tends to be a more conservative option for those who cannot predict future income.