Affordable Life Insurance Protection for Your Family

Why Term Insurance Is Good

If you are shopping for a life insurance policy, you may be wondering why term insurance may be a good type of life insurance to own.

Term insurance offers you several advantages over other types of life insurance policies.

But first, let’s review how term life insurance works.

How Term Insurance Works

Term life is a type of life insurance policy that provides you with temporary coverage, usually lasting from 10 to 30 years.

The Policy Term is the duration of time you are insured.

You may be able to choose a Policy Term lasting for a period of 10, 15, 20, 25 or 30 years. There are 35 and 40-year terms available, depending on your age and health.

You are Insured for the Policy Term. The Owner of the life insurance policy agrees to pay premiums on a regular basis to the insurance company.

In return, the Insurance Company agrees to pay out a death benefit to the beneficiary of the term life policy if the insured person dies while the life insurance is In Force, subject to the Terms, Conditions and Exclusions stated in the Insurance Contract (life insurance policy).

If the insured is alive when the term life policy expires, there is no pay out of any benefits, and the insurance coverage ends.

Many term insurance policies include a Provision of Renewability, which means you may renew your term policy for an additional term, usually up to 10 years, when your current policy ends.

That way, if you still need life insurance protection, you can stay insured.

You won’t have to take a medical exam to prove insurability; however, your renewal premium will be higher than your original term policy premium, because it is based on your age at the time of renewal.

Level Term Life Insurance

Level term life is the most popular type of term insurance plan.

Level Term means your insurance coverage amount never decreases and the premium you pay never increases, during the life of your Policy Term.

Term life insurance provides you with temporary life insurance for a specific number of years.

Usually, term life policies offer coverage up to a maximum duration of 30 years.

However, depending on your current age and health, you may be able to select a "Policy Term" that provides protection for a period of 10, 15, 20, 25, 30, 35 or 40 years.

Term life builds no cash value inside the policy, it is not an investment, it is "Pure Protection". That’s why it usually costs up to 5 times less than permanent life insurance.

Features of Term Life Insurance Policies

  • Term life is the lowest priced type of life insurance.
  • Term life insurance lasts for a set duration up to 40 years.
  • Term policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy.
  • For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to your beneficiary if you die any time during those 15 years.
  • If you're alive at the end of the policy term, the coverage ends.

Advantages of Term Life Insurance Policies

  • Premiums are usually much lower for Term life insurance compared to whole life insurance.
  • Term life provides funds for people who depend on you for financial support.
  • Creates an estate to leave to your heirs, if you haven’t had a chance to build much wealth.
  • Level term life insurance premiums remain the same for the term of the policy. So, 25 year level term means your premiums stay the same for 25 years.
  • Provides the maximum life insurance protection for your dependents at the lowest cost.
  • Provides affordable life insurance protection to fit almost any budget.
  • Many term life policies offer you the option to convert your coverage to whole life insurance by some future date, (without having to prove insurability – taking a medical exam).

Term Life Insurance Quotes

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