What Is Term Life Insurance? Understanding Your Most Affordable Life Coverage Option
A Simple, Smart Way to Protect What Matters Most
Term life insurance offers straightforward, affordable financial protection for your loved ones. It pays a guaranteed death benefit if the insured passes away during a specified term often 10, 20, or 30 years. Unlike permanent life insurance, term coverage is focused purely on protection not cash value.
At OnePoint Insurance Agency, we help individuals, families, and business owners across Georgia, Texas, Florida, Illinois, Alabama, Arizona, and beyond find the right coverage from top-rated carriers. Whether you're protecting your mortgage, your children’s future, or your business, we’ll guide you every step of the way.
What Term Life Insurance Covers
Term life insurance pays a tax-free lump sum (death benefit) to your chosen beneficiaries if you pass away during the policy term.
Key Features:
Guaranteed Death Benefit – Financial support for your family when they need it most
Fixed Premiums – Your monthly payment stays the same throughout the term
Level Terms – Common terms include 10, 15, 20, or 30 years
Convertible Options – Many policies allow conversion to permanent life insurance
Flexible Coverage Amounts – Ranges from $50,000 to several million
Best Uses:
Paying off a mortgage or loan
Replacing income for dependents
Supporting business continuity plans
Covering final expenses or debts
What Term Life Doesn’t Cover
It’s powerful, but not perfect.
Limitations:
No payout if you outlive the term
No cash value accumulation (unlike whole or universal life)
Premiums increase significantly if you renew after the term expires
May require medical underwriting, depending on your age, health, and coverage amount
Optional Riders: You can add benefits like accelerated death benefit, waiver of premium, or child term coverage—subject to availability and underwriting.
Who Should Consider Term Life Insurance?
Term life is ideal for people who need maximum coverage at a manageable price. It's especially useful if you’re:
A young parent or spouse replacing income for dependents
A homeowner wanting coverage that aligns with your mortgage
A business owner protecting loans, partners, or key employees
A single parent or dual-income family managing household responsibilities
A budget-conscious buyer who needs coverage without high premiums
Example: A 35-year-old non-smoker in good health may qualify for a 20-year, $500,000 policy for less than $30/month.
Frequently Asked Questions
What happens when my term policy ends?
It expires with no payout. However, you can often renew, convert to permanent coverage, or explore new options.
Can I get term life insurance without a medical exam?
Yes. Some insurers offer no-exam policies with simplified underwriting, though premiums may be higher or coverage more limited.
What’s the difference between term and whole life?
Term life lasts a set number of years and has no cash value.
Whole life lasts for life, builds cash value, and is significantly more expensive.
Is the death benefit taxable?
Generally, no—life insurance death benefits are tax-free to your beneficiaries.
Can I cancel my policy?
Yes. You can cancel anytime with no penalty, but premiums paid are not refunded.
How OnePoint Can Help
As an independent agency, OnePoint compares policies across multiple top-rated carriers to find the best combination of price, flexibility, and protection.
We’ll help you:
Break down your options in plain English
Estimate the right coverage amount
Navigate the health questions and application process
Support you through every policy change, upgrade, or renewal
Whether you're just getting started or fine-tuning your financial plan, we’ll meet you where you are.
