Affordable coverage to meet your temporary needs.
One of the main benefits of term life insurance is that it’s much more affordable than a permanent life insurance policy. In some policies known as convertible terms, you may even have the chance to upgrade to a permanent life insurance policy without as much hassle as you would if you purchased a whole life policy to begin with. Most policies are also “level premium,” which means the premium stays the same throughout your policy term.
What to expect from a term life policy.
Most companies will require you to undergo a medical exam to apply. The insurance company may also inquire about your family medical history, medication history, whether or not you are a smoker, driving habits, hobbies, and occupation. They then use these factors to determine the length of the policy, payout amount, and monthly premiums.
In general, you should get the longest-term policy, as you will only pay more the older you get and the worse your health becomes. You’ll also want to choose a death benefit amount that can help your family in the event of your death.
In the end, you’ll determine a beneficiary. This can be one person or several people. A beneficiary can be anyone, even someone who isn’t a family member. Some people choose their spouse, while others prefer their children or another loved one.
Types of Term Life Insurance
Renewable
This type of policy provides coverage for a set time. The policy can then be renewed at the end of the term without having to undergo an additional medical exam. The premium can vary and is usually based on your age. There is usually a restriction on the number of renewals or an age cap.
Nonrenewable
This type of policy provides coverage for a set time, and cannot be renewed. You may apply for a new policy upon completion, there are no guarantees.
Convertible
This type of policy enables the policy owner to convert temporary coverage for permanent insurance without an additional medical exam.
Reentry
This type of policy allows you to “renew” your policy after the expiration date after it is determined that you are insurable. You can also apply for premium rates that are lower than the guaranteed rate.
Level Term
This type of policy guarantees the payout does not fluctuate if you pass away within the term, but premiums may or may not increase yearly.
Decreasing
A decreasing term policy is where the payout amount of the policy declines each year. These policies are typically used for needs that go down over time, like a mortgage.
Nonrenewable
This type of policy provides coverage for a set time, and cannot be renewed. You may apply for a new policy upon completion, there are no guarantees.
Convertible
This type of policy enables the policy owner to convert temporary coverage for permanent insurance without an additional medical exam.
Reentry
This type of policy allows you to “renew” your policy after the expiration date after it is determined that you are insurable. You can also apply for premium rates that are lower than the guaranteed rate.
Increasing
Increasing term insurance starts with a low amount of protection that increases over time. It’s often sold as a rider to another policy, to give you an extra death benefit equal to your total premiums.
Interim
An Interim policy offers immediate coverage and then converts to a permanent policy after a specific time.
Return of Premium
This type of policy returns all premiums paid in a lump sum if you outlive the term.
Mortgage Redemption
This policy does exactly what it says – it pays off your mortgage in the event you pass away before the loan is paid off.
Deposit
A level term insurance policy with a much higher premium for the first year and then reduced in subsequent years
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Enrolling as early as possible is better for term life insurance. As we age, it’s more common for us to develop health conditions, and your premiums will increase. Getting your policy at a young age will keep your premium low and affordable.
Many young adults in their 20s and 30s might not have the income to afford permanent coverage, so having some life insurance through a term life insurance policy is a good choice.
We especially recommend that those with children look into a life insurance policy. so they are taken care of even after you are gone.
Find the best coverage for your unique needs.
Medicare Advantage
Also referred to as Part C, private insurance companies contracted with Medicare offer these plans. They provide all of your Part A and B benefits.
Medicare Supplements
Also known as Medigap, Medicare Supplements help pay the leftover 20% that Parts A and B don’t cover. They essentially "cover the gap".
Prescription Drug Plans
Also known as Part D, this is an optional benefit that covers your prescription drugs. It is offered to everyone who has Medicare.
WHole Life Insurance
