What Is Term Life Insurance?
Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees the payment of a stated death benefit if the insured person dies within a certain time period. When the term life insurance policy’s term expires, the policyholder has the option of renewing it for another term, converting the policy to permanent coverage, or allowing the policy to lapse.
If the insured individual dies during a given term, term life insurance ensures payment of a stated death benefit to the insured’s beneficiaries.
Other than the guaranteed death payout, these policies have no value and do not have a savings component like whole life insurance.
Premiums for term life insurance are determined by a person’s age, health, and expected life span.
It may be possible to convert term life insurance to whole life insurance, depending on the firm.
Term life insurance policies with 10-, 15-, or 20-year terms are frequently available.
3 Types of Term Life Insurance
Dependent Term Life
Your spouse, civil union partner, domestic partner, and qualifying children are all covered under this plan.
Basic Term Life
Typically, this is an employer-paid coverage option that is supplied for a fixed length of time and provides critical financial protection to your beneficiaries.
Supplemental Term Life
An alternative for employee-paid coverage that allows you to add on more coverage as your needs change. Coverage for dependents, spouses, and domestic partners may be available.
Term Life Insurance
vs.
Whole Life Insurance
Term life insurance protects your family for a set period of time, but whole life insurance does not.
Prepare To Protect Your Loved Ones
The death of a loved one has far-reaching consequences that touch every part of a person’s life. Suddenly, regular expenses become considerably more difficult to budget for. The first step in safeguarding and preparing your family for whatever lies ahead is to plan ahead by choosing the correct life insurance option. Before it’s too late, find a flexible, comprehensive coverage package that can protect your loved ones’ financial future.
Term life insurance is one of the most affordable types of life insurance since it provides temporary financial security for your loved ones during your working years. Its death benefit sends money directly to your beneficiaries to aid with funeral expenditures as well as ongoing financial commitments like daily living expenses, your children’s schooling, and future mortgage payments.
