When you grow a family it is important to consider having term life insurance. Term life insurance policies typically provide more coverage than other types of insurance plans such as whole life and universal life. This type of policy can be beneficial for families who need to provide financial protection while meeting other competing priorities like saving for college or retirement.
Term life is an agreement that provides temporary coverage until a specified date, after which the policyholder no longer has coverage and their premiums stop. Some term life policies benefit from automatic renewal with higher premium rates, but if the insured declines possible renewal, any earned dividends are lost. However, many companies allow consumers to convert their term plan into another form of permanent life insurance
Term life insurance premiums are generally less expensive than other life insurance policies since they have lower monthly costs. However, they typically provide coverage for a limited amount of time and do not build cash value like permanent life insurance plans such as whole and universal life. Limited-term covers individuals for a number of years; the premium rate is usually guaranteed during this period.
Many term life policies guarantee lifetime renewability which means that the policyholder can renew their term plan even after it expires without having their health status evaluated again. If your term plan expires and you want to continue coverage then all you need to do is pay the appropriate premiums and any additional fees that may apply.
The best way to determine what type and level term coverage is right for you and your loved ones is to compare all the different term options available – contact one of our agents to help you compare premiums and benefits side by side while learning how each one varies.
Secure the BEST