Term Insurance

Term life insurance is coverage for a specific period of time. This type of life insurance is very simple and basic. The policy includes a death benefit amount and period of time for the coverage. Common policy term lengths are 10, 20, and 30 years. The premium stays level during the entire term period.

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Reasons to Purchase

A typical term insurance policy guarantees fixed rates. The policy owner pays the premium, all equal amount, at equal times each year. Common payment frequencies are monthly, quarterly, semi-yearly, or yearly. A typical term insurance policy guarantees a set death benefit. Coverage is provided for a temporary period of time. For instance, a 20-year policy will provide coverage for 20 years, as long as the premium is paid. There are options to convert (to permanent) or renew the policy at the end of the term period.

Disadvantages of Term Coverage

The biggest complaint about term insurance is the chance of death is low. Therefore, there is no return on the premium paid. However, the benefit of having your family taken care of outweigh the cost. In addition, if the coverage is no longer needed, the payment can stop at anytime.

Knowing the reasons for life insurance coverage and understanding the best type of insurance is important. Contact us today to see how term insurance fits into your personal insurance planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisors.