Learn More About Term Life Insurance
Life insurance options can feel overwhelming. We have the answers to some common questions to help you learn more about term life insurance.
Whichever option you choose, the GEICO Insurance Agency and our partners. can provide an affordable life insurance policy that is perfect for you and your family. Get a life insurance quote online or call us at (888) 532-5433 and let us help you get a policy that meets your needs.
What is term life insurance?
Term life insurance provides coverage for a specific time period and pays benefits if the insured's death occurs during the policy period. Policy periods are usually 10, 15, 25, or 30 years. The policy premiums must be paid timely to keep the policy in effect.
Who is covered by term life insurance?
The policy covers a person known as the insured. If the insured's death occurs during the policy period, the people that will be paid if the insured dies are called beneficiaries. These beneficiaries are named in the policy. In many cases, these are people that rely on the insured financially. There can be one or more beneficiaries named in the policy.
Why do you need term life insurance?
Term life insurance provides financial help to the beneficiary. Often this money is used to replace income that's lost as a result of the death of the insured. The benefit can also help pay bills, future expenses, and even burial costs.
How much term life insurance should you purchase?
As the insured, you can select an amount that meets your needs. The amount needed usually takes into account providing for someone if you pass away. If small children will be the beneficiaries, you may want an amount that would cover your lost income for the number of years until they turn 18 or graduate from college.
Some other items to consider in the amount of the policy include:
- College expenses for children
- Mortgage on a house
- Outstanding debt (student loans, car notes)
- Funeral expenses
What are the benefits of term life insurance when compared to whole life insurance?
Term life insurance is usually a less expensive option compared to whole life insurance. This is because term policies are for a set time and amount that will be paid. If the insured is still alive at the end of the policy period, the policy expires and has no value after expiration.
How much does term life insurance cost?
The cost of a term life policy is based on the amount of the coverage and the insured's:
- Life expectancy
- Other lifestyle hobbies, employment, etc.
You may be eligible for a No-Med Exam policy. Instead of a medical exam, this option asks a few detailed health, financial, and hobby questions.
If the policy term expires and the insured is still alive, the policy can be renewed. The premium for the new policy would be recalculated with the insured's current age, health, and life expectancy along with the desired death benefit.
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.