Term Life Insurance

In these uncertain times, it’s never too early to start thinking about how you intend to protect your family in the event you pass on. One of the most effective ways to provide financial security is to obtain life insurance. Life insurance is protection from uncertainties and peace of mind your loved ones will not be burdened by the financial obligations you leave behind. While there are several different types of life insurance to choose from, the simplest and most cost effective is term life insurance. Take a few minutes to familiarize yourself with term life insurance and make an informed decision if and when you decide to purchase.

The Basics

Term life insurance is exactly what it sounds like- life insurance for a limited term. Typically, it’s available for 10, 15, 20 even 30 years. If a policy holder dies before the term ends, the beneficiary receives a death benefit, tax free. If the term ends before the policy holder dies, the policy is terminated and no death benefit is paid out. To resume coverage, you will have to purchase another policy or discontinue coverage completely. In most cases, renewing a policy does not guarantee premiums will stay the same.

Term life insurance is generally the least expensive type of life insurance available and the most cost effective way to provide a substantial death benefit. The goal is to provide income replacement and help with financial responsibilities in the event primary financial contribution is no longer available. Term life insurance policies do not build cash value but the death benefit can be used to pay consumer debt, educational expenses, funeral costs, even a business loan in the event the borrower should die before an outstanding loan is settled.

Annual Renewable Versus Level term Life Insurance

Obviously, with term life insurance, no benefit is paid when the policy holder survives the term. But what happens if the policy holder gets fatally sick during the term but does not pass before the term ends? In many cases, it may be difficult to get approved for a new policy when you have an illness. Annual renewable term life insurance makes it possible to renew without question, in exchange for increased annual premiums. At the end of the first year, the premium is recalculated. In most cases, annual renewable term policies are available for 10 to 30 years, or until age 95. By contrast, level term life insurance is a popular choice as the premium amount stays the same for the duration of the term.

Term life insurance may be right for you and your family if you are looking for an affordable way to provide financial protection or your loved ones in the event you die. Term life is ideal for protecting loved ones from the burdens of a mortgage, business loan, educational expenses, even consumer debt. If you would like to learn more, talk with one of our representatives today or visit us online. Let the knowledgeable experts at United Life Group show you how a term life policy can give you peace of mind by protecting your loved ones at a price you can afford.