What is Term Life Insurance
-Term Life Insurance provides temporary coverage for a specified period of time, in increments of years. Usually these periods are from 5,10,15,20, even 30 year term products are available, but be sure to understand the guarantee period for any policy purchased. See: "Can the rates increase?" below.

The beneficiary receives the death benefit if the insured dies while the policy is in-force; no benefit is paid if the insured survives to the end of the term. Policies do not build up cash value, so if the policy is surrendered, the policyholder does not receive any cash value.

return to top

Why purchase Term Insurance?
-Term policies are designed to meet a specific need for a stated period of time. They are sometimes purchased to supplement permanent insurance. Term insurance is useful for pure protection needed for a definite period at a low cost.

return to top

Can the rates increase?
The Triple X legislation adopted by most states January 1, 2000, has changed the rates and guarantees on term insurance as we knew it before Dec. 31, 1999. While many companies are still getting their Triple X compliant products approved through the states, many have come out with these products and the insurance consumer should have a complete understanding of the product before they make that purchase.

Premiums remain level on guaranteed term insurance. Initial premium rates for term coverage may be lower than those for permanent insurance products because of the limited periods of protection and absence of cash value, but the premiums can escalate upon renewal, as the insured gets older or as the duration of the term increases past the guaranteed period.

The products being offered that we sell range from full guarantees on 10, 15, and 20-years at competitive rates to mid-range guarantees and short term guarantees.

The mid-range guarantees generally include 5 and 10-year level premium plans with rates guaranteed level for only the first five years. 15, 20, and 30-year level-premium plans with rates guaranteed level the first 10 years.

The short-term guarantees are on term products for 5, 10, 15 and 20-year level-premium plans with rates guaranteed level the first 3 years only.

Every company's products will differ, so be sure to read the illustration provided.

return to top

Is a Term Insurance policy Convertible?
-A feature of some term insurance policies is "convertibility". This allows the policy owner to convert the term policy to a permanent insurance policy that builds up cash value. Generally, no additional underwriting is required to exercise this option.


return to top

How much coverage do I need?
-Our experience is that people typically are securing term insurance to either cover a personal or business loan, or to replace family income in the event of premature death.
If for a loan, the balance due determines the amount of coverage needed.
If to replace family income, the proceeds should be enough to take care of your family. With the insurance proceeds and prudent investing, your family would be able to replace your annual income. Many experts advise at least three to five times your annual earnings.


return to top

How long should my coverage be for?
-The answer is a highly personal one, and will vary depending on your health, your age, and your current and expected financial situation. Term insurance will cover you only for a period of time. The policies can have a good rate for the guarantee period of 5,10,15,20, or 30 years. After that you will have to re-qualify to have the policy renewed for another term period. That new term period will usually be at a higher rate, based on your current age and health. If something has gone wrong with your health during that term of time, then you may be forced to pay annually increasing premiums after the level guaranteed period in order to continue the coverage. So you need to carefully evaluate how long you will need life insurance.
We can help you to analyze how much coverage you need simply fill in this Free Quote request form

return to top