Term Life Insurance Explained 

Here’s a quick glimpse into the basics of term life insurance.

Benefits of a Term Life Insurance Plan

The key benefits of a term life policy are:
  • The most affordable type of life insurance plan.
  • Fixed premiums for the entire length of the selected term.
  • It’s one of the simplest forms of life insurance.
  • Plan benefits that can be used by your beneficiaries in any way they wish.

Term Life Insurance at a Glance

  • Term life insurance is also known as temporary life insurance. It is typically the most popular and affordable life insurance product on the market.
  • You can purchase term insurance for a set period, often in 10, 20 or 30-year term lengths. During the selected term length, if something should happen to you, the plan’s benefit will be paid directly to your chosen beneficiaries tax-free.
  • After a term expires, you can renew the plan at adjusted rates. Renewing a term plan typically doesn’t require you to undergo a medical exam, which means that term renewals are guaranteed.

What can Term Life Protect?

  • A new home. A term plan’s benefit will help ensure that your home stays in the hands of your family in the event you pass away. It can be used to cover mortgage payments and protect your loved one’s way of life.
  • Growing children. Many parents purchase a term plan to make sure their children will continue to have access to education. If you pass away without coverage, you could be leaving your children without a way to pay for their education, limiting their future options.
  • A family business. Term life insurance benefits can help give your business the capital it needs to continue operating if you are no longer around.
  • Investments and properties. Keep your assets safe and pass them down to your family without subjecting them to taxes or any other maintenance fees.
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