Term life insurance provides
protection for a specific period of time with guaranteed
premium rates and is the least expensive form of life
Term periods and rate guarantee periods typically range from 10 to 30 years, with 20 years being the most common term period.
lower initial cost in comparison to permanent insurance
just paying for the death benefit
lump sum payment to your beneficiaries if the policy is in force
a good choice for people in their family-formation years
for covering "needs" that will disappear in time.
WHEN THE LEVEL TERM PERIOD ENDS - What Happens?
If you buy a term policy only to realize at the end of the guaranteed level term period that you still have a need for life insurance?
Most policy contracts will give you the option to convert your policy when you reach the end of the level term life insurance premium period.
When converting to permanent life insurance or extending your current term life insurance contract to annually renewable term life insurance,
higher premium costs will prevail due to your current age and health condition.
If your health has deteriorated, you may find that it's much too expensive to convert your policy or you may not even be insurable.
Your only option may be to continue to pay premiums on an annual renewable basis.
Most term life insurance policies will renew to age 90 or 95 as long as premiums are paid.
WHAT KIND OF LIFE INSURANCE SHOULD BE BOUGHT AND HOW MUCH?
How much coverage will be needed now and in the future?
Which type, term life insurance or permanent life insurance best fits your needs and budget?
How long do you want to lock in guaranteed premiums?