Term (temporary) insurance is an affordable life insurance that provides coverage during a specified period of time or until a specific age. If you worry about your family’s financial stability after something unfortunate happens to you, then purchasing life insurance could be the solution. Purchasing life insurance for specific period of time - until your children are grown up and are independent, or you have enough savings to cover your family’s future expenses - would give you peace of mind that your family will be financially secure.
Types of Term Insurance:
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Level Term – premium payments remain the same for a specified period of time, but will increase on policy renewal. Death benefit remains the same until the end of the term
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Decreasing Term – the premium remains the same for the term of the policy but the death benefit decreases to zero, at which time the policy ends. This type of coverage is commonly used to pay off outstanding debts – e.g. to protect the mortgage
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Increasing Term – the death benefit starts at a specific amount and ends at a specific time
Advantages of Term Insurance:
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Simple and easy to understand
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Affordable and fixed premiums for the life of the policy
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Provides great solution for a temporary period of time such as 1 to 35 years
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To cover specific financial responsibility such as mortgage payments, family expenses, or children’s education
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If purchased with a "return of premium term" rider, the amount of the cumulative premiums paid at the end of the period will be refunded to the policy owner, if the policy is still in force
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Gives you the flexibility to convert your term policy to a permanent life insurance policy if your family goals or needs change
Disadvantages of Term Insurance:
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Temporary coverage
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Does not build cash or loan value
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Premiums will increase upon policy renewal
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At the end of the term, if the policy is not renewed, it will expire
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It may not be renewed or available beyond a certain age
Not sure if Term Life Insurance is right for you? Complete the “Get a Free Quote” form above or call us at Toll Free number (888) 592-7862 and one of our agents will help you find the right insurance for you and your family.
