Home Life insurance Life insurance questions Basics of term life insurance policy Basics of term life insurance policy Written by Penny Gusner Penny Gusner Penny is an expert on insurance procedures, rates, policies and claims. She has extensive knowledge of all major insurance lines -- auto, homeowners, life and health insurance. She has been answering consumers’ questions as an analyst for more than 15 years and has been featured in numerous major media outlets, including the Washington Post and Kiplinger’s. Posted on: June 5, 2014 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. You’re not getting something for nothing—you’re paying for the policy.For term life insurance you have to keep the policy in force by paying your monthly or annual payment during the term you selected, which may be 10, 15, 20 or 30 years of coverage. Then if you die during the period that the policy is in effect your beneficiary would receive the face amount of the policy. Learn the basics of term life insurance here.The only time you could “owe money” to your life insurance policy is if you have a whole life policy and borrowed against it by withdrawing some or all of its cash value. However, if you borrowed against it and then died, your wife wouldn’t actually owe money but instead the life insurance policy payout would be reduced by the amount you borrowed and didn’t pay back in. × Get Free Life Insurance Quotes Today! Zip Code Please enter valid zip Age Age 16 – 20 21 – 24 25 – 34 35 – 44 45 – 54 55 – 64 65+ Coverage Amount Coverage Amount $50,000 – $100,000 $100,000 – $200,000 $200,000 – $300,000 $400,000 – $500,000 $500,000 – $1,000,000 $1,000,000 – $2,000,000 $2,000,000 – $5,000,000 $5,000,000+ Coverage Type Coverage Type Whole Life Term Life Final Expense Not Sure Gender Gender Male Female Non-Binary Tobacco Use Yes No Compare Quotes Penny GusnerContributor  . .Penny is an expert on insurance procedures, rates, policies and claims. She has extensive knowledge of all major insurance lines -- auto, homeowners, life and health insurance. She has been answering consumers’ questions as an analyst for more than 15 years and has been featured in numerous major media outlets, including the Washington Post and Kiplinger’s. QuickTake What is demutualization and what does it mean for policyholders? How life insurance works during a divorce Can you change the coverage of your term life insurance? Can you cash in a paid up life insurance policy? Can I withdraw money from my life insurance policy? How can I get life insurance if I'm in poor health? Are you too old to buy affordable life insurance? Do life insurance policies pay out if you die of old age? Can relatives steal your life insurance money? Can someone take out a secret life insurance policy on you? Protect yourself from insurance revenge during divorce Can I take out a life insurance policy on my spouse? What to do if your life insurance policy lapses How to find lost life insurance policies Can I withdraw money from my term life insurance? 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Can a life insurance beneficiary change on deathbed? how to find a lost life insurance policy what happens to cash value in whole life policy at death How long do you have to be a non smoker for life insurance? See more > Related Articles Can you change the coverage of your term life insurance? By Insure .com Can you cash in a paid up life insurance policy? By Les Masterson Can you cash in a life insurance policy to pay off debt? By Barbara Marquand Can I withdraw money from my life insurance policy? By Desiree Ghazi How can I get life insurance if I’m in poor health? By Desiree Ghazi Do life insurance policies pay out if you die of old age? By Desiree Ghazi ZIP Code Please enter valid ZIP See rates