What is Term Life Insurance?
Term life insurance provides a pre-determined amount of life insurance for a set period of time, during which the insurance must pay a monthly premium to keep the coverage in effect.
After the coverage period expires, the client is no longer guaranteed coverage at that rate and must either forgo coverage or obtain additional coverage with different payments or conditions.
If the life insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
What is the difference between Term Insurance and other types of coverage?
Term life insurance can be contrasted to permanent life insurance such as whole life, universal life, and variable universal life, which all guarantee coverage at fixed premiums for the lifetime of the individual unless the policy owner allows the policy to lapse.
Term insurance is not generally used for estate planning needs or charitable giving strategies but is used for pure income replacement needs for an individual. Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not provide for a return of premium dollars if no claims are filed.
Contact us to learn more about the right life insurance for you.
Contact Us About