Term Life Insurance
Term Life Insurance is the most uncomplicated life insurance, providing affordable coverage to meet your temporary needs. Typically you will only pay the same level of premium for the entirety of the policy term.
What is Term Life Insurance?
While this may seem a poor deal, term life insurance’s benefits are often much cheaper than a permanent life insurance policy. In some policies known as convertible terms, you may even have the chance to upgrade to a permanent life insurance policy without as much hassle as you would if you went immediately to a permanent life insurance policy. Most policies are also “level premium,” which stays the same throughout your policy term.
How does it work?
Once you have had your medical exam, you will be offered several coverage options. In general, you should get the longest-term policy, as you will only pay more the older you get and the worse your health becomes. You’ll also want to choose a death benefit amount that can help your family in the event of your death.
In the end, you’ll determine a beneficiary. This can be one person or several people. Some people choose to select their spouse, while others prefer their children. A beneficiary can be anyone, even someone who isn’t a family member.
Types of Term Life Insurance
One kind of policy is the yearly renewable term, a short-term life insurance policy that covers you for a year. You can renew without a new medical exam at the end of the year. The starting price for this will often be much lower than a level premium policy. However, as you renew, the price for the policy will only increase.
Another kind is the return of premium. While all other kinds of term life insurance offer you nothing at the end of your term should you live, this pays you back all or a portion of your premiums if you accidentally let a policy. However, you’ll be paying much higher premiums in exchange.
The final type of policy is the guaranteed issue. These are the easiest to get as no medical exam is required, and the health questions are minimal. However, you will be assumed to be a health risk and automatically have higher premiums. You may also find that full death benefits are not provided within the first few years of coverage.
What is the best time to enroll?
Many young adults in their 20s and 30s might not have the income to afford permanent coverage, so having some life insurance through a cheaper term life insurance policy is better than having nothing.
We especially recommend that those with children look into a life insurance policy. A life insurance policy is guaranteed protection for your family that you can offer in the event of your passing.
Learn about your options with Elite Insurance Group
Looking for a hassle-free way to learn about term life insurance?
We’re here for you.
We can explain your options clearly and give you multiple quotes so that you can compare your options. And we’ll only enroll you in a plan if it’s your best option. We are available Mon – Thurs 8:30 am – 5 pm and Fri 8:30 am – 3 pm.