Term Life insurance has long been the most popular coverage option. It is a cheap and easy way to provide protection for a specific period of time. Unlike permanent life insurance, It pays a death benefit to your beneficiaries only if you die during the term.
There are many different types of term life insurance. Level term products are the most popular plans purchased today. Level term policies can be from 5 years to 30 years and the premium and death benefit do not change during the term of the contract.
When purchasing a level term life insurance policy be sure you are aware of the guaranteed* premium period. The guaranteed premium period is the term the insurance company is obligated to keep the policy in force as long as you keep paying the premiums. Remember that you are not obligated to pay, but if you stop paying, the policy will lapse or cancel. (usually after a 30 day grace period). Many term insurance policies can also be renewed.
Unique Types of Term Life Insurance
Return of Premium Life Insurance.
The key difference is at the end of the guaranteed term period, the carrier will refund or return all of the premiums you have paid. So, this means your net cost will equal zero!
No Medical Exam Life Insurance
Ordinarily, before a life insurance application is approved, a mini medical examination is necessary to prove your health and insurability. There are several types of life insurance with no medical exam, however:
- Non-Medical Simplified Issue Plans These policies have no medical exam but still require you to provide medical information during the application process.
- Guaranteed Issue Life Insurance These products have no health questions, No physical and you can’t be turned down!
- Guaranteed Issue Graded Plans These plans ask no health questions, have no medical exam but have varying death benefit payouts.(Please contact us to find out more)
Advantages and Disadvantages of Term Insurance
Advantages:
- Premiums are generally lower than those for permanent insurance.
- It’s great for covering specific needs that will disappear, such as mortgages or car loans.
Disadvantages:
- Premiums increase after your guaranteed term expires. (providing it renews past that term.)
- Coverage may terminate at the end of the term or may become too expensive to continue.
- Generally, the policy doesn’t offer cash value, paid-up insurance or final expense insurance.
Here at Graco Financial we work with the top carriers from across the country to serve our clients. We will use our many years of experience to get you the best deal possible for your situation. It doesn’t get any easier than that!
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Give us a call at 1-800-680-1429
