Term life insurance: What length of term insurance do you need?

Getting confused with life insurance terminology and all of the policy information of whole life insurance. Then term life might be perfect for you. It is simple to understand and relatively cheap.

Term life insurance means you pay the premium for a term and if you die, your beneficiary collects. If you don't die, nobody collects. Terms can be 5,10 or 20 years. What could be simpler?

Some people feel like they're wasting money because at the end of the term, they don't get anything back. But that is what Whole Life Insurance is for. With whole life, you pay higher premiums in to the policy, and after a long period, there is cash value that you can use.

Term insurance is a "hedge" insurance policy. You're hedging that you might not live to the end of the term and you want to leave a death benefit. The death benefit will cover expenses such as your children's college or university tuition or pay off your mortgage.

If you buy term life insurance you will know that for a set period of time you will have the coverage you need to offer your family protection when you are gone. With you gone, the earning power of your family may be greatly reduced. Your family may quickly fall into financial tragedy if you have not provided them with the protection they need.


The easiest way to learn about term life insurance is by shopping on the Internet. The Internet will lead you to many different companies offering this coverage and allow you to investigate their policies and service with ease. You will be able to find consumer pages, reviews and forums with advise on how to select the best insurance company and arrange for a policy with all of the coverage you need.

It is important to learn all you can about term insurance and how to judge a trustworthy insurance company. Advice from friends and family can be very helpful as well.

But always remember, when you buy term life insurance, it is just for a certain term or length of time. You will need to renew the coverage with a new policy when the term expires. Your insurance company will usually prompt you with a reminder when this date is near.

About the Author: Bob Buckham is webmaster of http://www.canadalifeco.com and has been contributing insurance and mortgage articles to the finance industry for years.