Term life insurance is the simplest form of life insurance. It protects for a specific period, or “term.” If you die during the term, the policy pays out a death benefit to your beneficiaries. If you live through the term, the policy expires and you receive nothing. Term life policies are typically less expensive than permanent life insurance policies, which is one reason they are so popular.
What is Term Life?
Term life insurance is a type of life insurance that offers coverage for a specific period of time, typically between five and 30 years. If you die during the term of your policy, your beneficiaries will receive a death benefit. If you live to the end of the term, your policy will simply expire and you will not receive any money back from the insurance company. Term life policies are much less expensive than permanent life insurance policies, which is one of the reasons they are so popular.
Which is The Best Term Life Product?
There is no one-size-fits-all answer to this question, as the best term life product for you will depend on your individual circumstances and needs. However, there are a few things you should keep in mind when shopping for term life insurance. First, make sure to choose a reputable insurer with a good financial rating. Second, compare premiums and coverage amounts from different insurers to find the best deal. Lastly, consider your needs and make sure the policy you select provides the right amount of coverage for you.
Term life insurance is a great way to protect your loved ones in the event of your death. If you are looking for term life insurance, be sure to keep these things in mind to find the best policy for you.
What Are The Different Products?
There are two main types of term life insurance: level term and decreasing term. Level-term life insurance provides coverage for a set period of time, typically 20 or 30 years. The death benefit remains the same throughout the length of the policy. Decreasing term life insurance also provides coverage for a set period of time, but the death benefit decreases over time. This type of policy is typically used to cover a mortgage or other loan.
Level Term vs Decreasing Term
Level Term
- The death benefit remains the same throughout the policy
- Common terms are 20 or 30 years
- More expensive than decreasing the term
Decreasing Term
- Death benefit decreases over time
- Used to cover a mortgage or other loan
- Less expensive than level term
What is Return of Premium Rider?
Many term life insurance policies come with a “return of premium” rider. This rider allows you to get all or part of your premiums back if you live to the end of the policy term. The return of premium rider is a great way to get some money back from your life insurance policy, but it also makes the policy more expensive.
What If You Live Past Policy Term?
If you live to the end of your term life insurance policy and don’t die, the policy simply expires. You will not receive any money back from the insurance company, but your beneficiaries will not have to pay a death benefit either. Some companies will give you the option to convert your policy to a whole life plan. This of course will be at a higher premium.
Why is it Better to Get a Private Policy Instead of Through an Employer?
There are a few reasons why you might want to get a private life insurance policy instead of through your employer. First, employer-provided life insurance is often not portable, which means you can’t take it with you if you leave your job. Second, the coverage amount is often not enough to provide for your family in the event of your death. Third, employer-provided life insurance is often more expensive than a private policy.
Bottom Line
If you are looking for an affordable way to get life insurance. Term life is your best option. Knowing what term to get or how much you need to protect your family is exactly why we are here. Please give us a call to get a quote today.