Term insurance covers you for a specific number of years – and is the lowest cost life insurance.
TermTerm The period of time that a contract covers. Also, the period of time that an investment pays a set rate of interest.+ read full definition insurance is the lowest cost life insuranceLife Insurance Insurance that pays cash to your family or other beneficiary after your death. This can give them income and help pay your funeral and other final costs.+ read full definition you can buy. It’s the most common type of insurance and can meet most insurance needs.
Term insurance provides you with insurance protection for a specific period of time. Policies are generally available for terms of 1, 5, 10 or 20 years, but you can’t get coverage after a certain age, typically between 75 and 85.
While your annual premium amount stays the same throughout the term, term insurance becomes more expensive to buy as you get older.
Most term policies are renewable, which allows you to extend your coverage for a new term without a medical exam when your original term ends. The renewal premiums are listed in the insurance contractContract A binding written or verbal agreement that can be enforced by law.+ read full definition.
Renewal rates are typically expensive and reflect the fact that no medical exam is required.