Term Insurance
Term Insurance can often be the best choice of life insurance protection since it can meet your needs now and fit comfortably within your budget. These policies are commonly issued for specified periods, such as 5, 10, 20 and 30 years; they can easily be renewed or converted to a Universal or Whole life policy. Listed below are some of the features of term insurance.
Affordability
Term Insurance provides a large amount of insurance protection for a relatively low premium. Clients who have a financial need for insurance coverage during a specific time period find term insurance particularly cost-effective. The fixed term creates a lower cost of insurance that translates into level and lower premiums when compared to permanent life insurance products.
Tax-free death benefits can bypass probate
The proceeds of a Term Insurance policy can be paid directly to the named beneficiary tax free, bypassing the estate and the delays and expenses surrounding probate.
Creditor protection
Provided certain family relationships exist between the life insured and beneficiary or that a beneficiary designation is irrevocable, Insurance policies may be protected from the claims of creditors of the policy owner, however this cannot be guaranteed.
Multiple lives covered on one policy
Almost all companies allow for more than one person to be insured on a single life policy, each with their own coverage and beneficiary designation. This allows business partners or family members to be covered on the same policy, reducing cost through a single policy fee and centralized billing.
Conversion Options
Clients have the choice of either a fully-convertible Term policy or a less expensive non-convertible plan. Convertible policies are often eligible to Universal Life or a Permanent Plan without providing evidence of insurability. Non-convertible premiums are often fractionally less; however, absolutely no conversion is available.
Optional benefits
A wide range of optional benefits is available on most Term Insurance including: Children’s insurance, accidental death and dismemberment, and waiver of premium.
Who Should Consider Term Life Insurance?
For you
Like most people, you probably have financial obligations like a mortgage or a personal loan. Life insurance gives you peace of mind knowing that your loved ones will not have financial worries in case of your premature death. Thanks to term insurance, you can cover:
- Student loans
- Mortgage loans
- Personal loans
For your family
To fully enjoy happiness with your family, peace of mind is essential. Only life insurance can provide you with an instant estate that would allow your loved ones to go on with their lives.
Thanks to term life insurance, you could:
- Arrange for your family to have temporary income, for the time it takes to get on with their lives.
- Provide for your children’s education so that they could pursue their studies in case of your premature death.
- As a single parent, give your children the necessary financial resources to carry them into adulthood.
For your business
Owning a business means investing finances and time without counting the hours you put in. Building a successful business often represents your life’s work. Have you thought about protecting the future of your investment?
Thanks to term life insurance, you could:
- Finance a buy-sell agreement
- Insure one of your key employees
- Meet the demands of your creditors concerning your financial obligations
