Life Insurance What is optional term life insurance? By Barbara Marquand | Posted on December 22, 2011 Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. Optional term life insurance is additional coverage you can purchase through your employer that is over and above the basic life insurance coverage you get through an employee benefits plan. Your employer typically pays the premium for the basic coverage, and you pay the full premium for any optional term life you buy. Term life covers you for a certain number of years and does not have any cash value. You can’t withdraw money or take out a loan from the policy’s cash value the way you can with permanent life insurance, such as whole life. The opportunity to purchase optional term life has advantages. You can buy the coverage at group rates, and you typically don’t have to answer medical questions or undergo a medical exam as long as you sign up during the enrollment period. You may be able to continue the group optional term life even after you leave your job, and you may be able to convert the coverage to a permanent individual policy. Purchasing optional term life is convenient because you don’t have to sort through a bunch of choices. But don’t let mere convenience sway you. It’s still a good idea to review and get life insurance quotes for other alternatives. You might be able to get a better rate for individual life insurance by applying for insurance on your own and providing medical information, especially if you’re young and healthy. Just because the coverage is offered through your employer doesn’t mean it meets all your needs. Read the policy, and evaluate the life insurance company just as you would if you were buying life insurance through a broker. Talk to a life insurance agent to plan how much coverage you need and can afford and to determine which products are best suited to meeting your financial goals. For more, see “The basics of term life insurance.” × 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 QuickTake Types of life insurance What is term life insurance and how does it work? No-medical-exam life insurance: What it is and how it works Whole life insurance: What it is and how it works Understanding the six Different Types of Term Life Insurance Policies What seniors need to know about buying life insurance The limitations of group life insurance What is simplified issue life insurance? Burial insurance: What it is and how it works What is variable universal life insurance? What is universal life insurance? How much term life insurance costs in June 2023 What is instant life insurance? A marijuana user's guide to buying life insurance The basics of group life insurance What is indexed universal life insurance? Term life insurance expiring: Four options if you outlive your term life insurance policy 5 reasons why permanent life insurance might be better than term life Instant-approval term life insurance: Everything you need to know Term life insurance for seniors Term vs. perm life insurance: Which one is right for you? Permanent life insurance: How it works The basics of guaranteed issue life insurance Do you need a term-universal life insurance policy? How to buy group life insurance for your small business 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