Term Life Insights on JRC:
- Sample Term Quotes – Life Insurance Rates by Age
- Life Insurance without a Medical Exam
- 3 Misconceptions about Term Life: Buyer Beware!
- How to Save Money on Term Life Insurance: The 8 Most Overlooked Secrets
What is Term Life Insurance?
Term life insurance is typically the most affordable type of life insurance policy which offers guaranteed level premiums for a set initial period, known a “term”. It is generally purchased to cover a short term insurance need (10-30 years) rather than lifetime.
The most common initial terms are:
- 10 years
- 15 years
- 20 years
- and 30 years
After the initial term, premiums typically increase annually on an “annual renewable” basis. This change to annual renewable premiums tends to come with a huge premium increase, so in order to avoid this, most term policies can be converted to a lifetime coverage option, such as whole life or universal life.
What Term Length Should I Consider?
It depends on why you need life insurance. Term insurance is most frequently used to replace income lost in the event of a family member’s unexpected death.
So if you think you will work 20 more years, a 20 year term policy might be the most suitable product for you.
However, if you need life insurance to cover a shorter term need, such as a business debt obligation, a lower cost 10 year term policy could do the job.
Give us a few minutes of your time, and we’ll recommend the appropriate term length for your needs. 855-247-9555