Protection on your terms.
This is among the most budget-friendly forms of life insurance, crafted to safeguard your loved ones for a specific duration. Determine the appropriate coverage amount for your needs.
Less than $1 a day in some cases
The right time in your life for term life.
A term life insurance policy provides assurance that your mortgage, your children’s college expenses, or your family’s daily financial needs will be covered in the event of an unfortunate circumstance. It offers an economical means to obtain the protection you desire for a specified duration.
Term life coverage that fits your needs.
Affordable
For less than $1 a day, you can have the right amount of term life coverage you’ll need to make sure your loved ones are taken care of financially if you pass away prematurely
Portable
Having a policy in place means you’re not tied to a workplace plan. You’ll get the right amount you need (typically not enough through work) and it will be with you wherever your career takes you.
Flexible
As life evolves, your term life policy has the flexibility to adapt as well. You have the option to convert a portion or the entirety of it into a whole life insurance policy, which provides lifelong coverage and accrues cash value that can be utilized for various purposes.
Questions about life insurance? We've got answers.
Term life insurance, or term insurance, operates on a straightforward principle: You first assess the appropriate coverage amount (with guidance from your advisor), then decide the duration you require coverage for by selecting from the available term lengths. Once that predetermined period concludes, your coverage also ends. If you seek more enduring protection, permanent life insurance ensures coverage for your entire life and offers additional benefits that can be utilized throughout your lifetime.
There are term insurance policies for 10 and 20 years or 30 years, but once those terms end, so does your coverage.
The type of coverage you choose falls into two categories: annual renewable and level premium.
Annual renewable term life insurance provides coverage at a lower initial cost, but your premiums will rise each year as you age.
On the other hand, level premium term life insurance maintains consistent premiums throughout the term. For instance, Level Term 20 provides coverage for 20 years, with premiums remaining unchanged for the entire duration.
Term life insurance provides coverage for a specific duration and is often more budget-friendly than whole life insurance.
Conversely, permanent insurance offers lifelong coverage and provides a wealth of benefits you can utilize throughout your lifetime. It offers the opportunity to adjust coverage as your needs evolve. Whole life insurance gradually accumulates tax-deferred cash value over time, which can be used for various purposes. Additionally, it has the potential to earn dividends (though not guaranteed, most mutual companies have consistently paid them since their inception) that can be withdrawn as cash, applied toward premiums, or used to purchase additional coverage.
While it’s a valuable benefit, employer-provided life insurance often falls short in terms of coverage. In most cases, it offers just one to two times your annual salary, whereas the recommended coverage amount is usually around 10 times your yearly earnings. Additionally, should you change jobs or venture out on your own, you cannot carry this coverage with you. Furthermore, in terms of affordability, obtaining coverage at a younger age typically results in lower premiums.
Surprisingly, the cost varies based on factors such as your age, health, and the required coverage amount and duration. For instance, a $500,000 policy that provides coverage up to age 80 for a 35-year-old female starts at approximately 72¢ per day, while for a 35-year-old male, it’s only 87¢ per day initially. To obtain a precise quote, it’s advisable to consult with a trusted advisor.
Term life insurance lacks a cash value component, unlike whole life, universal life, or variable universal life, primarily because it provides coverage for a specified duration. To delve into your available choices, consider reaching out to an advisor.
Term life insurance policies offer an optional waiver of premium rider for added flexibility. With this feature, you can cease paying your life insurance premiums in the event of a qualifying disability while maintaining your coverage without any reduction in the death benefit. To determine whether a waiver of premium rider suits your needs, consult with an advisor. Don’t hesitate to reach out to an advisor for guidance.
When you’re in your younger years, term life insurance provides a straightforward means of safeguarding your loved ones. However, as your life evolves, so can your financial priorities. You might find the value of whole life insurance appealing, given its lifelong coverage and the additional benefits you can utilize during your lifetime. This is where a term conversion option becomes relevant.
As the holder of a term policy, you have the opportunity to convert a portion or all of your term coverage into a whole life policy, with guaranteed approval regardless of your health. Once the premiums are established, they remain constant, but they will increase as you age. Therefore, securing them at a younger age is a wise move.
How much do you know about life insurance?
