Term Life Insurance
Term Life Insurance Overview
Term life insurance is a popular choice of life insurance that acts as a no-frills policy that lasts over a specific set of time.No one wants to think about how our lives are going to end, but what’s worse is thinking about how our family will handle it. Many families who suffer the tragic loss of a loved one have to deal with emotional and financial stress. With life insurance, the financial burden on your family can be erased or at the very least, lessened.
Term insurance is different from other types of life insurance as it covers the policyholder for a specific period of time. If something were to happen to you before the policy expires then your beneficiaries would receive the death benefit in the form of a tax-free lump sum. This money then can be used to cover funeral costs, pay bills, or other expenses. After the policy has expired then you will either have to extend coverage or look for another option for life insurance.
Many policies are written for either 10, 20, or 30-year terms and provide a guaranteed death benefit. Unlike permanent life insurance options, term insurance does not provide cash value or accrue money over time. With its simplicity, term life insurance is one of the most popular ways to keep your family protected should you pass away.
Types of Term Life Insurance
Term life insurance is considered the most basic form of life insurance, but there are numerous variations to consider. Below is a list of each policy to consider:
- Level Term Insurance
- Annual Renewable Term Insurance
- Decreasing Term Insurance
- Return of Premium Term Insurance
- No Medical Exam Term Insurance
- Group Term Insurance
- Mortgage Protection Term Insurance
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Term Insurance Cost
Not only does term life insurance offer a straightforward option, but it also tends to be cheaper than many alternatives as well. Typically, costs are determined by a number of different factors. The five most important factors include:
- Health
- Age
- Coverage Amount
- Term Length
- Riders
Each of these criteria can affect how much you pay a month or annually for coverage. For example, longer terms prove to be more expensive than shorter terms. Also the larger the amount you are covered for, the more you will have to pay for the policy. Applicants who are also younger and healthier tend to pay less than their older counterparts.
Have Questions About Term Insurance?
A big decision like choosing a life insurance plan shouldn’t be something that is taken lightly. Here at Advanced Insurance Concepts, we understand the importance and want to be a resource to you during this time. Our agents have years of experience and are happy to discuss your goals and options for life insurance. To get started with a free consultation, give us a call today at 816-476-8191.