Term Life Insurance
Term Life Insurance Information
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.
When Does Term Life Insurance End?
With a term life insurance policy, your coverage ends when the term is up or when you die, whichever comes first. For example, if you purchase a 20-year term life insurance policy on yourself and you are alive when the term is up, the policy terminates automatically. If you die before the 20-year term is up, your beneficiaries can make a claim and receive the death benefit.
Which Term Life Insurance Is Best?
Choosing the right term life insurance policy for your situation is a highly personal process. It’s crucial to work closely with your agent to fully understand your life insurance options and choose a term life insurance policy to meet your needs.
Your agent can help you get personalized quotes from reputable life insurance companies to help you get the most value for your insurance dollar.
How Much Term Life Insurance Do I Need?
While there are many theories about calculating your ideal amount of term life insurance, everyone’s situation is different, and your needs may not fit with any of the popular methods for calculating how much life insurance you should buy.
As you think about how much life insurance you need, consider how much money you are willing to spend on a term life insurance premium. Your family structure, future plans, debts and whether anyone depends on you for their financial stability are all important factors.
Work with your agent to determine your ideal life insurance amount and get a personalized quote.
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.