TERM LIFE INSURANCE is so-named because it is designed to last a specified period of time – a term. You have a TERM in school. A politician has a TERM in office.
WHOLE LIFE insurance is the opposite of term life. It is designed to last a lifetime. A great benefit is that it accumulates cash for you over your lifetime. The monthly cost is also higher.
So, if cash is tight yet you want to protect your family from your unexpected death, term life may be your best choice.
Typical features of TERM life policies:
Generally, the shortest term available is a 5-year term life policy. I’ve even seen one for a SINGLE year. However, term life plans are available for up to 30 years.
The premium is usually FIXED for the entire term you have selected. No rate increases!
Most plans are guaranteed renewable after the term is over, so as long as you continue to pay the premium (probably at a higher rate) the plan cannot be cancelled even if your health status may change.
Be aware that usually there is a 2-year suicide clause, meaning that if you commit suicide in the first two years the death benefit will not be paid.
Convertible – the ability to convert the term life into a whole life policy is another popular option in most plans.
Accelerated death benefit – most plans today have a great feature included that will ADVANCE half the death benefit to you should you be diagnosed with a terminal illness and are expected to die within 12 months.
Is a TERM policy right for you?
Before buying any life insurance you should discuss your intentions with us so we can help determine which type of plan is appropriate to meet your needs. Everyone’s need is different.
Call and let’s talk or send me an email and ask for a comparison of the different policies available today.