What Is Term Life Insurance?
Term life insurance is usually the most affordable option when you want life insurance to cover financial obligations that are temporary. Term life insurance is a contract between a policyholder and an insurance company that says if the insured person passes away within the time period of the policy, the insurer will pay a death benefit to the beneficiaries named on the policy. Term life insurance is typically available in lengths of 10, 15, 20, 25 and 30 years.
The key features of term life insurance are:
• It’s generally the cheapest way to buy life insurance.
• Term life insurance policies have a specific length of time when your rates are locked in.
• There’s no cash value in a term life insurance policy.
Types of Term Life Insurance:
Level Term Life Insurance:
• A level term life insurance policy maintains the same premiums and death benefit throughout the term. Rates won’t increase as you age, and the death benefit is consistent whether you die in the first or final year of the policy.
Annual Renewable Term Life Insurance
• An annual renewable term policy’s premium increases each year you renew it. When you choose this policy, you’re guaranteed to keep coverage and don’t need to reapply.
• It may be good for people who want to fill a short gap in life insurance. However, a short level term life policy may be a better choice.
Decreasing Term Life Insurance
• A decreasing term life insurance policy’s premiums stay the same over the length of the policy, but the death benefit decreases steadily over time.
• Mortgage life insurance is a form of decreasing term life. Here the payout is tied to the declining balance of your mortgage, and the beneficiary is the mortgage lender, not your family.
• Regular term life insurance is a better bet because your family receives the payout and can use it for any expenses they choose .
Return of Premium Term Life Insurance
• A return of premium life insurance policy promises to refund the premiums you paid if you outlive the policy. As you can imagine, the refund feature makes the policy more expensive.
• Return of premium term life is available.
• How much life insurance do you need?
• To choose the best duration for a term life insurance policy, consider the length of the debt or situation you want to cover. For example, if you just bought a house and took on a 30-year mortgage, you’re likely looking at 30-year term life.
Contact us to learn more about the right critical illness coverage for you. Contact us to learn more about the right term life insurance for you.
What Is Whole Life Insurance?
Whole life insurance offers coverage for the rest of your life and includes a cash value component that lets you tap into it while you’re alive.
Whole life insurance offers three kinds of guarantees:
• A guaranteed minimum rate of return on the cash value
• The promise that your premium payments won’t go up
• A guaranteed death benefit amount Whole life insurance is more expensive than term life insurance because people with a whole life policy are guaranteed to have a death benefit when they die. Term life insurance, on the other hand, offers level rates for a specific period, such as 20 or 30 years. Term life policies are cheaper than whole life insurance because they offer only coverage, not cash value.
Contact us to learn more about the right whole life insurance for you.
What is Final Expense Insurance?
Final expense insurance is an insurance policy used to pay for burial expenses and funeral services when the named insured dies.
Such a policy helps ease the financial burden placed on a family when a loved one passes away.
More About Final Expense Coverage Final Expense insurance is a basic issue life insurance policy that covers people until they reach 100 years old. It is quite similar to universal life insurance and is sometimes referred to as graded life or burial insurance with easy issue permanent coverage.
As an inexpensive insurance choice, final expense coverage can be used to cover the funeral and burial costs of the policy holder. Most people who do not want to place a hardship or burden on their families with these burial and funeral costs will take out burial insurance policies.
