Understanding the life insurance options available to you is important in selecting which policy would be best for you and your loved ones. That’s why our team of life insurance experts are devoted to finding you a term life policy that meets your needs.
Term life insurance is a type of life insurance that covers you for a specified period of time. These policies can provide peace of mind for an affordable price. Our team of experts are ready to find you a policy with the coverage you need that fits your budget.
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There are three main types of term life insurance policies: level term, yearly renewable term, and decreasing term.
Level Term. Level term, or level premium, policies are what you typically think of when it comes to term life insurance. These policies have a specified coverage period of 10, 20, or 30 years. The premium and death benefit are fixed, meaning they stay the same throughout the term of the policy. At the end of that term, the policy may be renewed, converted to a whole life policy, or terminated.
Yearly Renewable Term. Yearly renewable term (YRT) policies can be renewed each year. You do not have to provide evidence of insurability to renew the policy. The cost of the premiums changes from year to year as your age impacts your insurability.
Decreasing Term. Decreasing term policies have a death benefit that declines each year according to a predetermined schedule, while you pay a level premium. These are often lined up with mortgage principals to make sure the family is able to pay it off in the event that the policyholder passes away.
Term life policies provide a death benefit in the form of a cash payment made out to the policyholder’s beneficiaries if the policyholder passes away during the specified period. This benefit can be used to cover final expenses, pay for medical bills, consumer debt, mortgage debt and more. In most cases, the cash benefit is not taxable.
The price you pay for your term life policy depends on your age, medical history, gender, and life expectancy at the time you apply for a policy, along with the value of your policy. Many people are able to purchase term life policies for low costs. The insurance companies can make these policies affordable because the risk of insuring people for a set period is lower than the risk of insuring for a lifetime, as with whole life.
If you outlive your policy, you may be able to renew or convert your coverage. The ability to renew may come with an additional cost through an insurance rider. If you develop a terminal illness during the specified period, you may not be able to renew your policy.
You can purchase a new term life insurance policy after your coverage period ends, but you can expect to pay higher monthly premiums as your age and health are reevaluated.
Term life insurance policies are a good solution for people who need coverage only for a set length of time. This insurance is good for people with small children, people with student loans, people with mortgages, and others with loved ones to take care of, who would miss your income if it was lost suddenly.
Term life insurance can provide a safeguard to help your loved ones cover their expenses in the event of your death. Our team of life insurance experts can help you find an affordable policy with the coverage you need.
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