Term life insurance is a type of life insurance that provides coverage for a specific period of time, typically 10, 20, or 30 years. It is the most basic and affordable form of life insurance, and is designed to provide financial protection for a specific period to the beneficiaries in case of the policy holder’s death.
The death benefit, or the amount of money the beneficiaries will receive, is determined at the time the policy is purchased and remains the same for the duration of the term. If the policyholder dies during the term of the policy, the beneficiaries will receive the death benefit. If the policyholder survives the term, the policy typically expires with no value.
Term life insurance is generally less expensive than permanent life insurance, such as whole life or universal life insurance, and is a good option for people who want to provide financial protection for their loved ones during a specific period of time, such as while they are raising children or paying off a mortgage.
It’s important to note that term life insurance policies have a variety of options such as level term, decreasing term and annually renewable term, and it’s important to compare and choose the right one for your needs. It is also possible to convert a term life policy to a permanent policy, but it may come with additional costs.
We are big fans of term life insurance it is the cheapest kind of life insurance and most affordable as such it’s very good for families professionals and others with large insurance needs. It is pure insurance unlike whole life insurance and universal life term life insurance Term Life Insurance has no savings or investment component.
What does that mean to you ? It means you get more insurance for the money! After all that is what you want , you di not have intention to buy stocks or open a bank account, you want insurance to protect your loved ones. You can get those other things elsewhere, don’t fall for the flash you hear and see elsewhere. You want your loved one to get the biggest check possible if something happens to you
It is very straight forward, You pay the insurance company a premium, they pay your beneficiary if you die, bottom line . That’s all there is to it if you do not die during the term of the policy the company gets to keep the money you put into it . ( Ask about policies where you get the money back !)
Some of the money collected on the polices that companies will have been paid out to the beneficiaries of other term policy old is who won their bets with the company, by dying, for lack of a better way explain it.
Term Life Insurance can be purchased for long periods Of time, 10, 20,25, even 30 years. The premium though remains the same since the cost of insuring you rises every year with age. The company manages to keep the premium the same rate by using complicated mathematical formulas, they charge you the same rate in the beginning as they do years later when you’re older .
Some policies you can renew at the end of the term, convert, or there is another type of term insurance which goes down in value. You pay the premium but the size of the death benefit goes down it starts off lower cost than the other type of term life.
This is used for people who are home buyers so if the borrower dies there is enough to pay off the house so with coincides with the mortgage going lower the face amount of value of the policy drops though many term policies that their price differences not that big anymore.
There are various types of riders and benefits known as living benefits that come with term Life policies these days, each company has its own,some will call it a competitive advantage over another type,or another company’s policy, they include such things as living benefits, double indemnity critical illness terminal illness riders and so forth.
Sometimes it’s just better to just get the policy which is larger with less features rates can vary and that’s why we are here to help you, we know the companies that will fit your health and need situation the best and will work together with you.