Term Life Insurance
Coverage for when you need it most
The most basic type of life insurance, and typically the least expensive is Term Life Insurance. It's generally low Cost coverage for a temporary need. It can be an attractive option for many young couples and individuals.
If you looking to cover college cost, protect a mortgage or replace family income. Term Life insurance could be the perfect solution for you. Term Life covers you for a specific period of time (such as 1, 5, 10, 15, 20 or 30 years) and pays a death benefit only if you die during the term.
Reasons to consider Term Life Insurance
Simple
With fixed, level premiums, term life insurance is simple to understand and this makes it appealing to many people.
Affordable
Only pay for the years when your family needs it most
Coverage
With term life insurance you select a policy term, typically 10 to 30 years, that could cover a specific period in your life.
Adopts to you
Coverage that can adapt to you, such as receiving benefits early to cover an illness. This feature is only available on term life insurance with living benefits.
Flexibility
With some term policies you can convert your coverage to permanent life insurance if your needs change. Conversion is typically limited by a specific deadline such as age or policy year.
Riders
Riders can be used to enhance to customize the policy to fit the client such as accidental Death Benefit, Disability Income, Child Term Rider and more.
Return of Premium
Return of Premium (ROP) will allow a policyholder to get back all or part of the premium over the lifetime of their policy. Not all term policies have ROP. Term life insurance with ROP typically costs significantly higher in premium than a regular term policy.
Limitations
Renewal Premiums
Renewal premiums can be expensive if you need to extend coverage beyond your initial benefit period
Limited Flexibility
Death benefit and coverage length cannot be adjusted
Cash Value
Term life insurance does not build cash value
Coverage Period
Coverage only lasts for a specific time period after which no coverage continues. Most outlive their term insurance needing some sort of permanent coverage that can last their entire life
Common uses for Term Life Insurance
Income Replacement
Can provide a few years of income replacement for families in their prime earning years.
Children's Education
Can provide a safety net should something happen to you while you’re saving for your child’s college education.
Divorce Settlement
Can be used to satisfy requirements related to divorce, ensuring that alimony and child support can be maintained.
Mortgage Payoff
Policy proceeds can be used to cover an outstanding mortgage balance or other debt.
Student Loan
Policy proceeds can prevent your family from being burdened with covering student loans.
Collateral Assignment
A term policy secures the loan in the case of a death, and it is required for many types of bank loans.