Term Life Insurance

Term Life Insurance

Affordable Life Insurance You Can't Afford No to Have!

“If a child, a spouse, a life partner, or a parent depends on you and your income, YOU NEED LIFE INSURANCE”

Term Life

Term life insurance is the most affordable way to protect your family’s financial security if something happens to you. It replaces your income in the event of your death, and ensures that the ones who depend on you can support themselves financially in your absence. Healthy men and women in their mid 30s and 40s can buy hundreds of thousands of dollars of coverage for under a dollar a day!

What is Term Life Insurance

Term life insurance provides coverage for a specific period of time. You can generally buy term life insurance for periods of five years or more, and your policy is active until that period passes. Because you only pay for it as long as you need it, term life insurance is considerably more affordable than whole or permanent life insurance.

WHO CAN BUY TERM LIFE INSURANCE?

Most people between the ages of 18 and 75 can buy term life insurance, although the younger you are and the better your health, the more affordable it is. While people with terminal conditions may have trouble getting approved for a policy, it’s possible for cancer survivors, diabetics, and people who take medications for cholesterol, blood pressure and other conditions to obtain coverage.

HOW DOES TERM LIFE INSURANCE WORK?

You can buy term life insurance for five, 10, 15, 20, or 30 years — however long you need it. So long as you pay your premiums on time, your policy will remain active until the end of the term period you’ve selected. If something happens to you while the policy is active, your beneficiaries will receive a death benefit for the amount of the policy. In most cases, term life insurance proceeds are tax-free. Consult your tax advisor if you have any questions. Term life insurance is a great way to make sure that your family’s well-being is taken care of for a minimal monthly premium. No one ever anticipates needing to use life insurance, and tragic life events happen unexpectedly. Be prepared and get a free term life insurance quote today.

ADVANTAGES

One of the biggest advantages of term insurance is its lower initial cost in comparison to permanent insurance, So with term insurance, you’re generally just paying for the death benefit, the lump sum payment your beneficiaries will receive if you die during the term of the policy.

Term insurance is often a good choice for people in their family-formation years, especially if they’re on a tight budget, because it allows them to buy high levels of coverage when the need for protection is often greatest. Term insurance is also a good option for covering needs that will disappear in time.

A good example is a commercial, personal, tuition Loan, etc.

WHEN THE TERM ENDS

But what happens if you buy a term policy only to realize at the end of the term that you still have a need for life insurance?

Well, you have different options: *Renew your policy

*Get a Whole Life one to support the Term Life

*Convert the one that you have to a permanent coverage one.

So if you’re considering a term policy, make sure you carefully consider how long you’ll need the coverage. If you’re pretty sure that your needs are temporary, then term insurance is probably the right choice for you.

RETURN-OF-PREMIUM OPTION

One exception to this rule is what’s called a return-of-premium term policy. With these policies, if you keep the policy in force for the entire term, the insurance company will refund the premium payments you made.

The premiums for return-of-premium policies are considerably higher than premiums for standard term policies. If you own a return-of-premium policy, dropping the policy before the full term has expired means that you will have paid a high price for your term insurance coverage and the premiums you paid won’t be fully refunded.

At best, you’ll get a partial refund of the money you put into your policy to that point.

KEY POLICY PROVISIONS

When considering a term purchase, one thing to keep in mind is that not all term policies are the same. Some may include certain provisions as standard features, while others may require you to pay extra to add these features as “riders” to your policy. So if you’re comparing term policies, remember that price is not the only factor to consider. Ask your agent about provisions such as:

Accelerated death benefits – allows a terminally ill person to collect a significant portion of his or her policy’s death benefit while that person is still alive

Disability waiver of premium – waives premiums when a policy owner suffers a long-term disability, typically one lasting six months or longer Accidental death benefits – doubles or triples the benefit in the case of death by accidental means.

CONVERTIBILITY

Another provision that is very important is something called convertibility. Some insurance contracts only allow “conversion” in the first few years of the policy, while others allow it at any point during the term. This valuable feature allows you to convert your term policy to a permanent policy (e.g., whole life insurance) without submitting evidence of insurability. Being able to convert to a permanent policy is a great option to have in the event that circumstances in your life change such as failing health or maybe just the realization that coverage is needed for a longer period of time than you originally anticipated. That’s why when purchasing a term policy, it’s never a bad idea to find out what kind of permanent policies are offered by the company you are considering. Some companies may only have strong term insurance offerings, while others may have very competitive products in both categories.

Life Bridge Group Inc.

Version en Español