What is Term Life Insurance?

       Term life insurance provides coverage over a specified period. Typically, term insurance policies provide coverage for 1, 5, 10, 15, 20 or 30 years, or say to a specified age like 65. Term life insurance policies only pay a death benefit to the beneficiaries if the policyholder dies during the specified term. If you elect to have coverage for twenty years, the insured will need to pass away during that twenty-year period. The most common form is level term life insurance. This means that the policy face amount, or death benefit, and insurance premium remain level during this time frame.  They remain level, they do not change as time passes regardless of the insured’s health conditions.  

How Could it Benefit You? 

       Are you in your twenties or thirties and just starting a family? Can’t afford a larger premium? Well, you could take advantage of your younger age and better health. It could be a good choice when the policyholder needs protection for a temporary time or a specific need. Term insurance has the advantage of being more affordable than permanent insurance, particularly in the early policy durations. For example, a 30-year-old non-tobacco female in FL who qualifies with a preferred best health rating could get a 10-year term policy with $500,000 in coverage for as little as $15 a month or less. 

Do you have a mortgage and want to protect your family in the event you die prematurely? 

       This is where you could use a decreasing term life insurance policy. These policies feature a decreasing death benefit and policy premium. They could be a perfect fit to cover a financial obligation that decreases over time like a mortgage. 

Are you a business owner and have a business partner? 

       Here you could use term life insurance to satisfy the needs of your buy-sell agreement. A buy-sell agreement is a legally binding contract that stipulates how a partner's share of a business may be reassigned if that partner dies or otherwise leaves the business. This agreement is typically funded with a life insurance policy.   

       A term life policy is the cheapest way you can get the most amount of coverage. Period. So if you need a larger death benefit, right now and for only a specified period, then term life insurance could be a great fit for you.