Why consider Term Life Insurance?
Term Life Insurance policies can be used to help:
- Tax-free death benefit paid to the beneficiaries
- Sustain a small business in your absence
- Avoid leaving a burden of debt on your loved ones after you're gone (such as a home equity line of credit, a home mortgage or a car loan)
You may also want to consider Credit Life & Disability Insurance, which is a type of life insurance designed to cover specific debt.
How It Works
Term Life Insurance provides death benefit protection for a specified period of time. Proceeds are payable to a beneficiary at the death of the insured, provided the death occurs within the term of the life insurance policy. Term Life Insurance is typically the least expensive type of life insurance, as it covers a shorter period of time (from one to as many as 30 years) and does not include any cash value at the end of the term, like
Permanent Life Insurance can.
Rates & Premiums
Term Life Insurance guarantees rates and coverage for an initial period. To remain covered beyond the initial contract you may need to sign a new application and pay an increase in premium.
Since term policy premiums are based on the likelihood of your death, the cost of insurance increases as you get older. Term Life Insurance does not offer cash value, but can often be converted to
Permanent Life Insurance, which can provide lifetime protection and build cash values.
Features & Benefits
- Term Life Insurance can be used on its own or to supplement a Permanent Life Insurance policy and provide additional coverage
- Term Life Insurance is available for terms such as 1, 5, 10, 15, 20 and 30 years
- Certain riders (or options) can be attached to Term Life Insurance policies, which are designed to enhance the basic coverage offered under the policy
- Your beneficiary will be paid the face value of the policy if death occurs before the term expires