How the Term Period Affects My Quote

When applying for term life insurance, the term period is the number of years you will have life insurance protection. You can purchase term life insurance protection for 5, 10, 15, 20, 25 and 30 year periods, depending on your needs. However, not every life insurance company offers plans for every one of these terms.

The most common periods of death benefit protection purchased—and therefore the most competitively priced—are the 10, 15, 20 and 30 year plans.

The term period you select will directly affect the price of the life insurance you apply for. The longer the term period desired, the higher the premiums will be. Because life insurance rates are based on your individual life expectancy, the longer the insurance company covers you, the more risk is involved for them. Because more risk is assumed by the insurance company, the rates for your term insurance will be higher, as the term you have selected is longer.