My employer provides me some life insurance coverage. But, I want more coverage. I’ve heard term life insurance is an affordable option. What are my term life insurance options?
Term Life insurance is the most basic and normally the most affordable life insurance plan.
This type of coverage offers pure death benefit protection only, meaning that there is no cash value that builds up within the policy.
With term life insurance, coverage is purchased for a certain length of time. 10 years, 15 years, 20 years, 25 years, and 30 years are the most common terms.
Typically when purchasing a level term life insurance policy, the amount of the premium will remain the same throughout the length of the policy.
Provided that the insured survives throughout the time period of the term life policy, and he or she wishes to remain covered by life insurance, they will need to re-qualify for a new policy at their then-current age and health status.
In some cases, a term life insurance policy may have an option to convert the coverage over into a permanent life insurance plan.
Increasing and Decreasing Term Life Insurance Coverage
On some types of term life insurance, the death benefit will go down over time.
These are known as decreasing term life insurance policies. (The premium, however, will usually remain the same.)
With a decreasing term policy, the policy ends when the death benefit reaches zero.
An individual may want to purchase a decreasing term life insurance policy to cover the balance of their unpaid mortgage.
Each year, as the amount of the mortgage balance decreases, so does the amount of the insurance coverage – until eventually both will end.
There are also term policies where the death benefit increases over time.
Often, this benefit will be purchased as a cost of living rider on the policy. A young parent may consider this type of policy as their coverage needs increase.
Take some time to discuss your life insurance coverage options by phone or schedule a webinar with a licensed insurance expert. Review the exact benefits available so you can ask questions.
Call 281.979.5441 or contact us via email to setup a day/time that’s convenient for you to discuss your current life insurance coverage!
It may be the most informative 2-3 minutes of your life.