Term Life Insurance
Starting your own family, buying a home, starting your own business or other major life events come with questions you never had to consider before. You don’t want to leave your family exposed to financial obligations they didn’t ask for. Life insurance will ensure the financial well-being of your loved ones after you are gone and provide for their needs later. But, what if you can’t afford permanent insurance right now?
If you are looking for an affordable way to get valuable coverage throughout a pre-determined time frame, term life insurance is the best solution. Flexible and cost-effective, term life insurance provides great short-term and long-term coverage to safeguard your family and assets.
How Term Life Insurance Works
Unlike permanent or universal life insurance, term life insurance covers you for a specific period of time at fixed rates for the term. It can last for 5 years, 10 years, 20 years or for any other period that is defined in the policy. Once the term expires, you can extend the insurance for another term, end it or switch to a permanent plan.
Renewable vs Convertible Term Life Insurance
Term life insurance covers you for a pre-determined period of time. What happens once those terms expire makes the difference between a renewable and convertible plan.
- Renewable Term Life Insurance : Renewable term policies automatically renew at the end of the term. For a 10-year term life insurance, the insurance would automatically renew in year 11 for another 10 years, but for higher premiums.
- Convertible Term Life Insurance : Convertible term policies can be exchanged for permanent life insurance, without a medical exam. This way, if you have a term life plan and later develop a medical condition that holds you uninsurable, a convertible policy allows you to exchange your term policy for a permanent life insurance plan with no medical exam.
When to Consider Term Life Insurance
- If you are starting a family and you are on a tight budget;
- To cover needs that will disappear in time, such as a college loan or other debts that will be paid down over time;
- You have a home with a fixed mortgage that you want to secure;
- You need a simple, affordable, straightforward life insurance to protect your growing family and your assets;
- If your needs are likely to change over time.
What Is The Best Plan For You?
Figuring out what type of term life insurance is best for you can feel like an intimidating process. A good plan will provide you with the comfort of knowing that you can ensure the financial well-being of your loved ones following your death.
If you find yourself struggling to find the term life insurance plan that makes the most sense to you, contact us. Our experienced insurance representatives will guide you through the process and will help you select the right policy for your needs.