Term life insurance covers the life of a particular individual for a specific number of years (the “term”) and dollar amount. It is one of the simplest and most affordable types of life insurance policies. This article provides information on what is term life insurance and an overview of typical considerations for MA term life insurance policies.
What Is Term Life Insurance?
Term life insurance policies range from 1 to 30 years. A set premium is due for each year of the policy and you must pay the premium in order to keep your policy active. If you become deceased during the time that your policy is active, the insurance company will pay a specified dollar amount to your beneficiaries. If you are still living at the end of the term period, your coverage basically ends at that point. Some insurance companies allow you to extend your policy, but at a higher premium.
MA Term Life Insurance Policies
Dollar Value and Number of Years
The amount of coverage that you select should be based on factors such as your debts, education expenses for your children, and replacing your income. You can purchase a term life insurance policy for a period of time that best fits your needs. Shorter time frames generally result in lower annual premiums. Keep in mind that life insurance policies are more affordable when you purchase them at a younger (and healthier) age, so it may be wise to select a longer time frame in order to lock in a low rate for those number of years.
Health Assessment
Insurance premiums are not only based on the dollar value and number of years but also on your health. Qualification requirements can vary based on the amount of coverage you select and on the particular insurance company. Some require a health exam (blood test and in-person interview) while others may simply conduct a phone interview with a series of questions on your medical history. Certain lifestyle factors, such as smoking, usually result in higher premiums. Additionally, some policies may exclude pre-existing conditions. It is important to understand what exactly your policy covers and does not cover.
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