Term Insurance
Senior Insurance Services, a nationwide insurance broker
Term life insurance provides coverage for a specific “term” at a fixed rate. It is the least expensive form of life insurance, does not build cash value and only pays a benefit to the beneficiary upon the death of the insured. Typically, the terms range from 10 to 30 years.
Generally, people purchase term life insurance to provide coverage for the financial responsibilities of the insurer’s beneficiaries or dependents.
How much term insurance should I carry?
The answer to that question depends on your current and projected future needs. Term life insurance is popular with young families who need protection during the early years of their family life. For example, if the insurer is the primary source of income for a family, replacing the lost income upon death is a starting point. The question is then, “How much will my dependents need until they can be self-sufficient?” Other considerations for determining how much to carry include, but are not limited by the following:
Talk to Us
Contact us Today
- Consumer debt
- Dependent care
- Higher education expenses
- Funeral costs
- Mortgages
Term insurance differs from other types of life insurance in that there is no accumulated value during or at the end of the term. Once the end of the term is reached, there is no cash value and the insurer must decide if he or she wants to renew the policy. If you choose to renew the policy, your premium for the next term will be decided based on your health and your attained age.
Types of Term Insurance
Level Term Life Insurance
Level term life insurance offers a fixed premium for the duration of the term. Knowing that you have coverage for a set period, from 10 to 30 years, makes budgeting easy because the premium will never increase for the life of the term. The longer the term could mean a higher premium since insurance companies average the cost and risk of younger clients with older ones.
Renewable Term Life Insurance
Renewable term life insurance generally renews every 3-5 years, but the insurer has the option to renew it. The renewals are based on the person’s current age, which can mean the premiums will increase. In some cases, proof of insurability based on a health assessment is required, but there are some that do not require proof of insurability. However, the renewal rate is still based on the person’s current attained age.
Convertible Term Life Insurance
Convertible Term Life Insurance offers people the flexibility of converting their term policy to a permanent whole life policy without the need to prove insurability. The conversion option gives people the opportunity to reassess their current and future financial needs as their goals change. Converting the term policy now gives them a policy with cash value. If you convert to a permanent whole life policy, your premium will increase and there is typically a window with a deadline in which you can make the conversion.
Is Term Life Insurance Right For Me?
If you are considering a term life insurance policy, call us at 1-800-594-5393 for more information and let us find the lowest rate available for you. As with all the other types of insurance, we work with multiple providers and can advise and direct you on the option that is right for you and your budget!
Senior Insurance Services
2801 Summer Tree Lane
McKinney, Texas 75071
1-800-594-5393
Copyright © 2018 / All rights reserved