When most people think of life insurance they think of the whole life insurance they or their loved ones carry: insurance from the time of purchase until death, at a fixed rate determined based on health and other factors at the time of entering into the contract.

This sort of insurance has no particular time factor involved: for so long as the payments are made and the purchaser survives the insurance is there, and provided the contract is not in some way voided, the coverage will pay out at the time of death.

Term life, however, is a different sort of contract. Term life covers a particular period of time, is priced in relation to that specific period of time, and ends when the stated period is completed. If the purchaser dies within the time frame stated there will be a payout. If the purchaser survives past the end of the contract there will be no payout, and all monies are kept by the insurer.

Unlike whole-life insurance no equity is built up, there is no value gained over time: it is a straight gamble. You gamble that you will die within a period of time, the company gambles that you will not, and whoever “wins” walks away with the money.

Why make the gamble? Because term life is often the least expensive form of life insurance available. Due to the simplicity of the contract, the limited term, and the possibility of making no payout at all, the insurer can afford to offer insurance at a reasonable price with a reasonable return to the purchaser’s heirs in the case of death. If the purchaser does die the payouts are respectable…so a working man or woman can attempt to buffer the cost of their death by making the gamble.

In a sense term life allows them to win either way: heads they live, tails their families get a payout. The results are not as reliable as those of whole-life: the purchaser can outlive the contract and be left with no particular gain. But the value is fair, and the price is right for many.

If you are facing the choice of how to take out life insurance to protect your family, you need to look into all the options, get the prices, and pick cautiously. Your particular needs and those of your nearest may not match a particular contract, company, or plan. Get copies of the plans, talk with agents, and be sure to get quotes!

You can do that through the various insurance agencies, but you can also get term life insurance quotes online. Take the time, do it right, do your research…and use that computer as a tool. It can save you hours and hours, and bring in more information than mere footwork ever could. To get started right away use the form below for free: