December 22, 2023

A Beginner’s Guide to Term Life Insurance

While thinking about the inevitable may not be pleasant, the fact is that life insurance is an important consideration should the worst occur. For those not familiar with the variety of life insurance options available, the number of possible choices in life insurance policies may be overwhelming at first. Let’s clarify some of the possibilities available by taking a look at one particular kind of life insurance. Term life insurance is a type of life insurance policy that may offer several advantages, so let’s dive into a beginner’s guide to term life insurance and learn more about it.

What is Term Life Insurance? 

Term life insurance policies offer life insurance coverage for a set term of years–10, 20, and 30-year policies are typical. Term life insurance is a pure death benefit, meaning that the primary purpose of the insurance policy is to provide financial protection for the policy’s beneficiaries after the insured party’s death. The beneficiaries can use the death benefit to pay for living expenses, funeral expenses, or other needs.

These types of policies contrast permanent life insurance such as whole life or universal life policies. With permanent life insurance policies, the insured can make withdrawals or loans from the policy’s cash value or can surrender the policy and receive the surrender value of the policy, neither of which is possible with term life insurance.*

Advantages of Term Life Insurance

So what are the advantages of term life insurance? As it turns out, there are some great reasons why one might choose a BetterLife Term life Insurance policy. Here are some of the possible advantages that term life insurance offers:

  • Affordability: because they do not accrue cash value, cannot be borrowed against, and only cover a set term of years, term life insurance policies are generally more affordable than their permanent life insurance counterparts. This can be a big boon for those who may find the higher cost of permanent life insurance doesn’t fit their financial needs, but who still would like life insurance.
  • Consistency: Term life insurance is consistent in that both the coverage and the premiums will not change over the term of insurance. This means that the premium payment you lock in won’t change whether your policy term is set for 10, 20, or 30 years.
  • Conversion: At BetterLife, we understand that life brings changes, and with that in mind, we’ve crafted our term life insurance policies with a conversion period, during which you are guaranteed to qualify for a whole life or universal life policy. This allows you to adjust to changing circumstances and take advantage of the solutions that may work best for you.

Term life insurance is a potent tool, which can help provide coverage and peace of mind in a way that is affordable, accessible, and consistent. This all means that term life insurance might be a great choice for a recent college graduate, a young family, new homeowners, or the budget-conscious.  But how do you find the right policy for you?

BetterLife is Here to Help

Whether you’re interested in term life insurance, or a permanent life insurance policy, or want to explore your options, BetterLife is here to help. We’re a member-owned organization that proudly provides high-quality service to each of our clients, tailored to their needs. We offer a host of benefits to our members and their families at every stage of life. Get in touch with us today, and our agents will help you explore what BetterLife can do for you. 

*Withdrawals and loans are subject to certain restrictions and may reduce the death benefit. Surrender fees may apply. Speak with your agent to understand if a surrender charge applies to your policy.

B1123 12/21/25