Term Life Insurance: a Definition

Term Life Insurance is just that - life insurance that is intended to last for a specific term, or period of time. Term Life Insurance is the nation’s most popular type of insurance policy and for good reason, as there are many benefits to this type of insurance...

What Options are Available?

A Term Life policy will guarantee you for your requested term in 5 year increments, usually offering a maximum cover of 30 years. Depending on your provider, you may be offered the option of a return of premium plan. This gives back every cent of the premiums that you paid over the course of the term.

Another beneficial policy that is issued in most states is No-Exam Term Life Insurance. This offers policyholders the option to receive affordable Term Life Insurance without having to undergo any medical examination and tests or answer health related questions. This time saving plan still allows you to choose the desired term of your policy.

Which Term Should You Choose for Your Term Life Insurance Plan?

• Many people choose a policy that covers them until their youngest child graduates from college, to ensure they can provide for them as they grow up.
• Many loans are issued with a condition that you must have insurance to honor that loan until you have paid it off. The length of the loan can therefore determine the length of a policy.
• In the same way, many secure their mortgage with insurance for the amount of time until it is paid off.
  

The most popular policy term bracket is between 20 and 30 years, as this usually provides a sufficient guaranteed protection period to cover a person through raising their kids and paying off the mortgage on their home.

What are the Benefits of Term Life Insurance?

Term Life policies come with a guaranteed face amount (often referred to as death benefit). If the insured dies during the term of their policy, the face amount remains the same; it doesn’t decrease the closer you get towards the end of the plan.

No matter how far into the insured’s policy at the time of death, the beneficiary will receive the amount agreed at the start of the term. Your Term Life premium cannot be increased during your term either, despite inflation. It is also guaranteed, as is the length of your term.

Term Life Insurance generally costs much less than whole life insurance. Term life plans are simply designed to cover costs in the event of a death, whereas whole life plans include an investment component that builds cash value over time which the insured can borrow against. The simplicity of Term Life Insurance makes it that much more affordable and as such it is far more common.

What Should I Do Next?

When choosing a Term Life Insurance policy, take the necessary measures to make sure that your policy is the best suited to your individual requirements. A decade is a long time, let alone two or three, so you have to be sure that you are getting the correct balance of services and cost.

Talk to one of our friendly licensed insurance professionals on (toll free) 888-301-4492 for free and comprehensive advice as to which policy you should choose. It is in our agent’s best interests to make sure you are happy with your Term Life Insurance policy. With 25+ years in the business, your satisfaction is our pleasure.