Term life insurance definitely isn’t the only life insurance policy out there; however, when it comes to the availability of life insurance policies to a consumer it is often regarded as the most inexpensive policy that you can buy.

In all general life insurance policies they pay a monetary benefit to those that are the named beneficiaries on the policy when the insured party dies.

The most popular life insurance policies purchased are:

• Whole life
• Variable life
• Term life

The difference from term life to the whole life or variable life policies is that the premium with a whole life policy and the variable life policy will go into an investment fund. In a term life policy no part of your premium payment is used for an investment purpose, it only goes to the policy to pay for the insurance itself.

Term Policy Costs

As mentioned above the term life insurance policy is going to be the cheapest form of insurance policy, at least this is true at the beginning. An example:

• 30 year old male
• Non-smoker

This person could expect to pay right around $2,500 per year for a whole life policy along with a death benefit that pays out $250,000. When it comes to the term life insurance policy this same term form is going to cost about $300 per year.

Here is the thing though; a whole life insurance policy premium is not going to increase over the years. The whole life insurance policy I also going to carry a cash buildup which can be drawn on or borrowed from at any time.

With the term life insurance policy the premiums on this policy are going to increase as the insured is growing older. That same 30 year old we talked about before paying $300 per year at the age 70 can expect to now be paying right around $12,000 per year instead of the original $300 at policy origination.

Term Insurance Security

Even with the long-term costs mentioned above most consumers do prefer the term life insurance in order to provide their families with the security they need while still being able to use the additional funds saved from not paying for whole or variable fund life insurance.

Most people will prefer this whether they can’t afford the other or they would simply like to invest in a manner that is going to serve their personal needs more; such as:

• College fund
• Saving for a second home
• IRA

It’s the same purpose as the other choices but people are just using their funds in their own and different way.

Continued Health Status Exams

As with many types of insurance plans, the term life plan is no different, the insured party is going to need to undergo the basic physical examination along with blood work to make sure they are insurable. The policy is going to remain in effect as long as the premiums are paid current and on time regardless if the insured gets sick post policy initiation.

Most of the term life insurance plans are going to be structured on a 7 or 10 year policy term. The annual term policy will carry the premium amount that will gradually increase each year. The 7 and 10 year policies though will carry the same premium for the entire duration of the policy. This is part of the reason they are the most popular.