Term Life

Why Choose Term Life Insurance?

Term life insurance is protection for a designated period of time. Term insurance is pure life insurance. These policies are typically written in 10, 20, or 30 year terms and provide the greatest coverage amount for the lowest premium as compared to any other form of protection.

 

Types of Term Coverage

Term life insurance consists of three basic flavors: level, increasing, and decreasing. Of those, we typically see need for level term and decreasing term.

Level Term

Level term is characterized by a level face amount (death benefit) for the entire coverage period of the policy. Upon the death of the insured, the face amount is paid out to the beneficiary. For example, a $100,000 10-year level term policy will provide a $100,000 death benefit if the insured dies any time during the 10-year period. The premium will remain level during the entire 10-year term.

Decreasing Term

Decreasing term, on the other hand, has a face amount (death benefit) that decreases each year until it reaches $0 at the end of the term. These policies are typically used when the amount of life insurance needed will decrease over time. For example, a policy holder takes out a decreasing term life insurance policy for the same amount as an outstanding loan on a house. As the years pass, the policy holder will not need as much life insurance since balance of the mortgage decreases each year.

 

As always, your personal situation will be unique. Call one of our licensed agents and start the conversation today!