What are the benefits of term life insurance?

On average, term life insurance rates are determined by age, lifestyle, medical history, and coverage needs. Here are a few additional benefits to consider: The cost of this coverage type is usually low. You can choose which term length suits you best. If planned correctly, a term policy may save you money upfront and provide your family ample security. You can scale your death benefit up and down with increasing and decreasing term policies.

Term Life Insurance

Q: What is term life insurance?

Term life insurance provides coverage for a set period. This contrasts whole life insurance, which requires scheduled payments your entire life. Basic term life insurance lengths are 10, 20, or 30 years.

Term Life Insurance

Term life insurance can help protect your loved ones financially for a set period if you pass away while the policy is active. Your beneficiaries can use the death benefit to help replace your lost income, pay debts and cover everyday costs. Aflac's term life insurance plans are competitive, reliable and available to purchase directly. Read on to learn what term life insurance is, how it works and how to buy a policy with the right amount of coverage.

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Key Takeaways

Term life insurance is a temporary life insurance policy that can provide coverage for 10 to 30 years.
If you pass away while your term life insurance plan is still active, your loved ones can receive a death benefit to help replace lost income, pay debts and cover other expenses.
Aflac offers term life insurance that you can purchase directly, with competitive rates, portable options and various coverage lengths.

What is term life insurance?

A term life insurance policy provides coverage for a set period, such as 10, 20 or 30 years. It can pay a death benefit to your beneficiaries if you pass away while your coverage is still active.

How does term life insurance work?

Term life insurance covers you for a set period. You can choose your preferred term length and coverage amount when you enroll. You must pay your premiums each month to keep the policy active.

If you pass away during your policy's term, your beneficiaries receive the death benefit. However, if you outlive the term, your coverage will typically end unless you renew your policy.

Term coverage life insurance may be a good fit if you want protection for a defined period, such as while you're:

Paying a mortgage
Raising children
Covering other major family expenses

Types of term life insurance

You can choose from several types of term policy life insurance, including:¹

Fixed term: Fixed-term life insurance is the most common type. It usually lasts 10, 20 or 30 years, and premiums remain the same during the entire term.
Increasing term: Increasing term life insurance allows you to increase the value of your death benefit throughout the term. Your premiums may increase over time, too. These policies tend to cost more, but they may deliver a larger payout.
Decreasing term: Decreasing term life insurance reduces the death benefit over time. This type of term life insurance may make sense if you expect to have fewer financial obligations as you age.
Annual renewable: Annual renewable life insurance provides coverage on a yearly basis. You must renew it by the policy end date to continue coverage. Premiums usually increase each time you renew the plan.
Group term life insurance: Group term life insurance can be purchased through your employer.

You can compare term life insurance policies to determine the right type for your coverage needs and budget.

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Term vs whole life insurance

While term life insurance is a popular option, you may also consider a whole life insurance policy. Whole life insurance is a permanent policy that may also come with a cash value component that can grow over time in a tax-deferred account.²

Here are the main differences between term vs. whole life insurance:³

Coverage length: Term life insurance typically only lasts 10 to 30 years, whereas whole life insurance lasts for your entire life.
Cash value: Whole life insurance comes with a cash value component that you may be able to access through borrowing, withdrawals or surrendering the policy. In contrast, term life insurance doesn't come with cash value.
Cost: Whole life insurance tends to have higher premiums than term life insurance because it includes lifelong coverage and a cash value component.

Term life insurance may be ideal if you only need temporary coverage or have a limited budget. Whole life insurance may be better if you want lifelong coverage.

Term life insurance vs. whole life insurance comparison

Is a term life insurance plan worth it?

Term life insurance may be worthwhile if you want to choose a term length that suits your needs. With a policy in place, you can enjoy peace of mind knowing that your loved ones can use the death benefit to replace your lost income, pay off debts and cover other expenses if you pass away.

Aflac's term life insurance comes with reasonable premiums and guaranteed issue options for select products, which means you may not need to answer medical questions to get coverage. Best of all, our coverage is portable, so you can keep your policy even if you change jobs. Aflac's term life insurance comes with reasonable premiums and guaranteed issue options for select products, which means you may not need to answer medical questions to get coverage. Best of all, our coverage is portable, so you can keep your policy even if you change jobs.

How to buy term life insurance

Before you buy term life insurance, it's important to consider how long you want coverage and how much financial support your loved ones may need. Aflac's life insurance calculator can help you estimate how much coverage may fit your goals, based on your:

Income
Debts
Mortgage
Children's education costs
Other long-term responsibilities

Keep in mind that your chosen term length and coverage amount can affect your premium. A longer term or higher death benefit typically costs more, while a shorter term or lower death benefit may cost less.⁴

Get a quote for Aflac term life insurance

Term life insurance can help provide temporary financial protection during the years your loved ones may rely on you most. The right policy length and coverage amount can give your family support for everyday expenses, major debts and future plans.

Aflac's term life insurance is portable and designed to fit most budgets. To find out if our term life insurance is the right choice for you, chat with an Aflac agent today and get a quote.

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