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.” Related Articles Can I take out a life insurance policy on my spouse? By Penny Gusner What happens to the cash value of my whole life insurance policy when I die? By Nupur Gambhir What is guaranteed cash value in a life insurance policy? By Laine Adley Can I withdraw money from my term life insurance? By Nupur Gambhir Do life insurance policies pay out if a person dies of old age? By Les Masterson Can you cash in a paid up life insurance policy? By Les Masterson