Term Life Insurance provides a specified amount of money to your dependents if you die, to cover costs like a mortgage and education. The term is determined when you sign up for insurance. Term Life Insurance is cheaper to purchase than whole life insurance because a payment is only made if you die before the end of the term. The proceeds from term insurance cover are paid to your beneficiaries without the deduction of any federal taxes. You usually pay a fixed premium for the entire duration of the term. However, since there is no investment component with this type of life insurance, you do not build equity.

People who are younger and in better health, particularly non-smokers and people in the normal weight range for their height and gender, typically get lower premium quotes. And because the incremental cost of getting all the coverage you may need is very small, it is better to focus on getting this coverage instead of signing up for riders such as accidental death or premium waiver riders, which just add to the cost of your premium. Another way to save money is to pay your entire premium on an annual basis, rather than monthly. Many insurers charge more for monthly payments.

You may not need life insurance if you don