Affordable Life Insurance Protection for Your Family
If you are shopping for term life insurance coverage, you’ll want to understand how term insurance works, what types of plans you can choose from, and how to select the right policy to meet your specific needs.
There are several different features that are important to consider when selecting your term policy:
Add Additional Coverage by Riders
Most term life plans offer you the option to add additional coverage to your policy using a "Rider".
With a rider, you may be able to add life insurance for your children and spouse.
In addition, there may be waiver of premiums available for disability, so in case you are injured, and out of work, your life insurance premiums would be paid by the insurance company.
What are the Best Term Life Policies?
The most common and most popular type of term life policy is Level Term life insurance.
There are several basic Types of Term Life Plans:
What is a Term Life Insurance Policy?
Term life is an insurance policy that provides a death benefit to the beneficiary of the policy if the insured person dies within the specified "Term" (duration) of the policy.
Terms on a term plan usually last for a period of 10, 20 or 30 years.
Choosing the right term insurance policy for your family’s specific needs can be a challenge, and rates can vary quite a bit among insurance carriers.
That’s why it is so important to work with a life insurance agent or broker who can help you get your questions answered about term life insurance and choose the policy and duration of coverage that meets your specific needs. Request a term life insurance quote.
What Does Term Insurance Cover?
Term life policies are is designed to provide death benefits to the named beneficiary(s) of the policy. People typically buy term coverage to replace their own income for their families, cover cost of monthly living expenses, as well as college tuition for the children, in the event that the passes away during a specified period of time.
However, some people choose to purchase only enough term coverage to pay for their own end of life expenses, burial and funeral costs.
When you buy a term policy, you select a "Policy Term" which is the period of time you have life insurance protection, such as 10, 15, 20, 25 or 30 years, and an amount of insurance coverage, usually ranging from $50,000 up to as much as $3,000,000 dollars or more, depending on your needs and budget.
The overall expenses you need your term plan to cover should help you determine the right amount of life insurance for you to buy.
You should take into account your family's anticipated future living expenses:
After adding all future foreseeable expenses, you can then deduct any assets you have accumulated, such as savings, checking accounts and investments, that may be used to help cover those costs to help you arrive at the right amount of life insurance coverage to provide for your family’s future financial security.
How Does Term Life Insurance Coverage Work?
Once you choose a term policy, you will pay premiums to the insurer to keep your policy "In Force" until the end of the defined "Policy Term", or the end of your life, whichever comes first.
You may also have the option of paying the premium annually, monthly, quarterly, semi-annually, or as a lump-sum payment at the start of your coverage.
If you pass away during the period of time specified in your term policy, your designated beneficiary which you select, will receive the death benefit proceeds from your life insurance policy.
The beneficiary of your insurance policy will choose how to receive the death benefits from the insurance company.
One option is a lump sum payment, but there are also annuity options, which provide you with a yearly payout, or even a checking account where the beneficiary can write checks from the account and receive an interest rate on the death benefits placed into the account by the insurer. These options may vary by insurance carrier.
Term life is a flexible insurance option that can help you plan for a wide range of future financial needs to be provided for your family.
How Much Does Term Life Insurance Cost?
The cost of your term policy will depend on a number of key factors including the underwriting requirements of the insurer.
Your insurance company will assess your health profile and assign you a rating, such as "Standard", "Sub-Standard" or "Preferred".
Some of the factors that affect your life insurance rating and the premium you are charged for your policy may include:
Term Life Policy Cost Example:
A 30 year-old female non-smoker would be given a "Preferred" rating and could expect to pay $25 to $35 a month for a 20 year, $500,000 term life policy. By contrast, a 50-year-old male smoker would be given a "Standard" rating and could expect to pay up to $500 or more per month for the same 20-year, $500,000 level term insurance policy.
The cost of your life insurance policy will vary widely – based on your age, health and other personal risk factors. In addition to the varying rates charged by insurer, which is why you’ll want to compare pricing among several of the leading term life insurance companies.
What are the Best Term Life Insurance Companies?
There are literally hundreds of insurance companies in the U.S.A. which offer term insurance policies.
Some of the top insurers offering the best policies and pricing may include the following:
How to Effectively Select a Term Life Insurance Policy?
When you want to buy a term policy, you will need to evaluate your family’s current and future financial needs for the period of time you need protection for them. Also, consider the appropriate duration of coverage – the length of time you want the life insurance to last.
Term coverage is important if you are the primary income earner for your loved ones and have dependents, or are starting your own family.
There are several important decisions to make when selecting the right life insurance policy:
What Type of Term Life Insurance Plan Do You Want?
The Process of Shopping and Applying for Term Life Insurance
Once you decide how much coverage to buy, and compare pricing by requesting life insurance quotes, you will need to complete an application for coverage. The life insurance company will review the application and may require you to take a health examination, which is paid for by the life insurer.
Once you are approved for coverage, you make your first premium payment to the insurer, and your life insurance policy starts providing coverage.
Term Life Insurance Quotes
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