Affordable Life Insurance Protection for Your Family
What is the Meaning of Term Insurance?
Term insurance, also known as, term life insurance or term life, is as type of life insurance policy that provides temporary coverage lasting for a specific period of time, usually up to thirty years.
What is a Policy Term?
The "Term" of a temporary life insurance policy is the duration of time the insured is covered – how long your life insurance policy lasts.
What Policy Terms are Available?
Usually, with a term policy you may be able to choose a duration of coverage lasting for 10, 15, 20 or 30 years.
However, depending on your age and health, and the insurance company, you may be able to get insured for a period of 35 or 40 years.
Usually, longer term life plans offering coverage fore 35 or 40 years may be limited to healthy individuals who are 50 years old, or younger.
How Does Term Insurance Work?
A term life policy provides coverage lasting for a specific Policy Term.
You select a term that meets your specific needs for coverage.
So, if you want to protect your mortgage on the house and your mortgage loan is for thirty years, you might choose a 30-year level term life insurance policy to meet your needs.
That way, if you should die before the home mortgage is paid off, your spouse or family would have the money to pay the mortgage and remain in the home they shared with you.
Level Term Life Insurance Explained
Level term insurance provides you with life insurance for a set period of time.
You may be able to choose coverage for 10, 15, 20, 25, 30, 35 or 40 years.
The longer your policy term, the higher your annual cost of life insurance.
With level term life insurance, your premium never increases, and your coverage amount never decreases during the life of your policy.
That way, you can count on your cost of life insurance remaining the same throughout your term life policy, and you can budget for the cost.
If you (the Insured) die while the life insurance policy is In Force, the death benefit from your insurance is paid out to the beneficiary of your policy. The beneficiary is the person or persons who receive the proceeds from your life insurance. You select a beneficiary when you apply for your policy. You have the option to add or change beneficiaries.
Usually, the death benefit from term life insurance is paid out free from federal income taxes.
If the insured person is alive when the policy term ends, the life insurance coverage expires, you are no longer insured, and there are no benefits paid out on the policy.
Keep in mind, term life insurance policies may offer the option to Renew your policy for another Policy Term, usually up to 10 years.
Choosing a Policy Term
Make sure you consider what you want your policy to accomplish. Whether it’s to protect your mortgage, replace your income, provide for your child’s college education, provide for your spouse’s retirement, pay off debt, etc.
Then figure out the longest period of time it would take to accomplish those goals and decide how long you need your term policy to last in order to meet your family’s insurance needs.
Term life can help you provide the financial security for your family’s future that they deserve.
If you need life insurance protection lasting for 30 years or less, term insurance may be a good option for you to consider.
Term Life Insurance Quotes
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