When thinking about the future, it can be difficult to think about life insurance. Once you start looking into life insurance and discover the different types of life insurance available, it can be hard to determine which product is right for you and your family.  

Term life insurance is an option that can provide essential financial coverage for your loved ones after you are gone. The insurance experts at Active Insurance Agency are ready to discuss the type of coverage that best fits your needs and budget. 

What Is Term Life Insurance? 

Term life insurance provides a guaranteed amount of money to your policy’s beneficiaries should you pass away during the policy’s term. This money, known as a death benefit, may help pay off outstanding debts or obligations and may be a financial safety net for your beneficiaries.  

Term life insurance policies are typically written for a set amount of years (e.g., 10, 20 or 30 years) or until the policyholder reaches a certain age (e.g., 65). Various coverage amounts are available, and you can consider what amount is best for your financial situation, age and health.  

While a term life insurance policy is in effect, you are responsible for paying premiums, which are generally lower than other life insurance products. However, term life insurance does not accrue any cash value. This means you would not receive money back at the end of the policy’s term. Policies can potentially be renewed at the end of the term; however, premiums will likely be higher. 

Term Life Insurance Vs. Whole Life Insurance  

Term life insurance differs from whole life insurance, another common type of life insurance. While term life insurance is in place for a fixed period of time, whole life insurance provides lifelong coverage as long as the policyholder continues paying premiums. Additionally, unlike term life insurance, whole life insurance has a cash value component that offers savings and investment opportunities. Whole life insurance premiums generally tend to be more expensive than term life insurance premiums. 

How Much Does Term Life Insurance Cost?  

Term life insurance premiums vary depending on term length, coverage amount, age and health status. Additionally, a medical exam—typically paid for by the insurance provider—may be required, and the exam results may factor into the cost. 

Choosing a Plan 

Active Insurance Agency provides several options for term life insurance coverage. Their agents can discuss your situation and help you find a policy that works for you and your budget. For more information or a quote request, visit their website at www.activeinsurancellc.com.