Term Life Insurance


Term life insurance is designed to provide you with a large amount of coverage for a very low initial cost.  If you have a young family and are just starting out sometimes there is not a lot of money for the extras.  Imagine if your family had to get by without one of the salaries that comes into your household, but still had all the same bills...what would you do?

Term life insurance coverage can protect your family's lifestyle by giving you the peace of mind knowing that even if the worst happens your mortgage and car loan will be paid off and there will be some money there to replace your income.  It provides this short term protection while at the same time allowing you the opportunity to later change the policy (convert) so that you will have life insurance protection at a fixed cost, and you can get that without having to qualify based on your health.

For the length of the initial term - for example 10, 20, or 30 years - term life insurance offers a fixed premium.  The longer the initial term, the higher the premium.   After the initial period of the term policy, it is guaranteed that you can renew the policy without having to answer any health questions...it is automatic.  There is a catch though - the price increases at each renewal due to the fact that you are older and you did not have to re-qualify for the insurance (for example if you had an illness that made you unable to qualify for a new policy, you can keep the existing policy but at a higher premium, guaranteed).

With some companies you can switch your Term 10 policy to a new Term 20 policy between the first and fifth policy anniversary, thereby providing a total of 25 years of life insurance protection before being faced with much larger premiums.

You can purchase Term Life Insurance as the foundation of your financial protection plan, and later convert the policy to Permanent Life Insurance.

It used to be that term policies were only available in non-smoker and smoker rates.  Recognizing that there are other factors that affect people's health, most life insurance companies now offer different rate categories based on factors such as your lifestyle, height and weight, family history, personal health history, and blood pressure and cholesterol levels.  The healthier you are the lower your rates!

The face amount of the policy is paid tax free to the named beneficiary(ies).  This can be a person(s) or a company.