What is Term Life Insurance?
Term Life insurance is a temporary life insurance product that has level premiums for a specific timeframe; 10, 20, or 30 years.
How Does Term Life Insurance Work?
Term Life Insurance allows you to purchase the most amount of coverage for the least out of pocket expense.
Here is an example:
Terry, a 35-year-old male with an Elite health rating has $500,000 in Term Life Insurance coverage.
His premiums are only $20 a month.
The monthly premiums are level for 10 years.
Meaning that the $20 a month will stay the same for the full 10 years.
If he were to pass away during the 10 year period, his beneficiaries would receive the $500,000 death benefit on an income tax-free basis.
Terry can cancel the policy at any time with no cancellation fees or penalties.
Longer Term Life Insurance Options
Generally, the longer the level premiums are the higher the cost of insurance is.
For example, if Terry would want to have level premiums for 20 years, his monthly premium would be $32 a month.
You can always start out with a shorter plan and change it later.
However, you will most likely need to re-qualify and start the application process over again.
Don’t worry, this is very common as most people purchase seven different life insurance policies in their lifetime.
Additional Term Life Insurance Options
There are also additional riders and benefits that you can add on, some for free and some cost extra.
Some of the options provide additional coverage if you get hurt or pass away in an accident.
Some riders, give your premiums back to you and some can pay you a disability benefit.
There are a ton of options and sometimes choosing the right plan can be a little confusing.
Please don’t worry, we are here for you and can help you search the market for the best overall value.
For an in-depth review of your current policies or if you have additional questions about Term Life Insurance please click here for a FREE insurance review.
Term Life Highlights
- Lower cost of insurance
- Higher coverage amounts
- Generally can convert a portion or all of the coverage to a permanent policy before the policy ends
- People in their working years
- People that have large personal or business debts
- Tight budgets
- Single non-married people that need financial protection from major illnesses or injuries (living benefits)
Mutual of Omaha is the most popular non-living benefits term life insurance company chosen by our clients.
They have very competitive term life rates with a fast underwriting process. Their product suite and options with additional riders make them a great value buy.
And when it comes to paying claims they are among the industry leaders in turnaround time.
To compare your policy to Mutual of Omaha or the market for the best value please click here to schedule a FREE insurance review.
National Life Group LSW is the most popular Term Life Insurance company chosen by our clients. Their built-in living benefits and competitive rates separate them from the pack. They provide industry-leading service, pay claims fast, and have an expedited application and underwriting process to get clients approved quickly.
These are just some of the reasons why National Life Group LSW is our most popular Term Life Insurance company chosen. To compare your policy to National Life or the market for the best value please click here to schedule a FREE insurance review.