Term life insurance provides
protection for a specific period of time with guaranteed
premium rates and is the least expensive form of life
insurance.
Term periods and rate guarantee periods
typically range from 10 to 30 years, with 20 years being the
most common term period.
ADVANTAGES
lower initial cost in
comparison to
permanent
insurance
just paying for the death
benefit
lump sum payment to your
beneficiaries if the policy is in force
a good choice for people in
their family-formation years
for covering "needs"
that will disappear in time.
WHEN THE LEVEL TERM PERIOD ENDS - What
Happens?
If you buy a term policy only to realize
at the end of the guaranteed level term period that you
still have a need for life insurance?
Most policy contracts will give you the
option to convert your policy when you reach the end of the
level term life insurance premium period.
When converting to permanent life
insurance or extending your current term life insurance
contract to annually renewable term life insurance,
higher premium costs will prevail due to your current age and health
condition.
If your health has deteriorated, you may
find that it's much too expensive to convert your policy or
you may not even be insurable.
Your only option may be to continue to
pay premiums on an annual renewable basis.
Most term life insurance
policies will renew to age 90 or 95 as long as premiums are
paid.
WHAT KIND OF LIFE INSURANCE SHOULD BE BOUGHT AND HOW
MUCH?
How much
coverage will be needed now and in the future?
Which type,
term life
insurance or permanent life insurance best fits your
needs and budget?
How long do you want to lock in guaranteed premiums?