Term insurance is commonly used to provide coverage when there is a need for short-term protection, or the policy owner has limited funds relative to the amount of life insurance needed. Families often purchase term with plans to convert to permanent insurance in the future.
Term insurance is also useful in situations where the policyholder is responsible for a mortgage or other bank loan and wishes to avoid leaving a financial burden to the survivors in the event of premature death.
Term does not build cash value and is the least expensive type of life insurance. Most term policies have renewable features, allowing you to extend the term of your policy without proof of insurability. In the case of Level Term, the death benefit is paid only if the insured dies during the term.
Benefits of Term Insurance
- Term rates are usually less expensive than other types of policies, allowing the maximum coverage for your dollar.
- Guaranteed renewable clauses allow you to continue your coverage at the end of a term or convert it to permanent insurance without having a medical examination. (Premiums may be higher with the renewed or converted policy.)
Term insurance is appropriate if:
- You need life insurance
- You are on a limited budget
- You wish to purchase the maximum coverage for your premium dollar
- You desire short-term coverage (not for entire lifetime)
Contact me to see if this is the best type of life insurance for you at 225.622.6554 or trish@insurancelady.com.
