Term life insurance is the simplest type of life insurance. Your TrueCoverage consultant will work with you to find the policy that fits your needs. These may include:
- Level term life insurance
- Annual renewable terms life insurance
- Return of premium term life insurance
- No-medical exam term life insurance
- Decreasing term life insurance
- Mortgage protection term life insurance
- Group terms of life insurance
How are term life costs determined?
The more likely you are to die within the policy term the higher the cost will be. The likelihood of dying within the term is largely determined by
- The State of Your Health: Insurance companies will take into account age, health record and family history
- Life Style: risky work, hobbies, tobacco usage etc.
- Death Benefit: The larger the death benefit the higher the premium
- Term Length: Terms may be from 10-30 years, the longer the term the higher the premium.
How does term life insurance work?
Your family depends on your income. Life insurance is an important part of planning for your family or dependents’ future.
No one enjoys planning for their death but doing so now could save your family from financial stress in the future if the worst should happen. In general life insurance is purchased to replace your income if you die so that your loved ones can pay debts and ongoing living costs.
A well- planned term life insurance policy should provide that in the event of your death there are sufficient funds to either pay off, or ensure that the mortgage could be maintained. Of course, there may be other debts and potential expenses such as college fees to take into account.
Term life insurance pays out if the insured, dies within the ‘fixed’ term normally 10, 15, 20 or 30 years.
Your monthly premium is fixed for the term of the policy and as premiums are determined by the age at which you start the policy it makes sense to start young and for as much as you can comfortably afford. You should review your situation regularly (say every 2 years) and certainly when planning a family or other major ongoing commitment like college fees. At times like these it may be wise increase your coverage with a suitable shorter-term policy.
Typically term life policy amounts range from $100,000 to $250,000 which may seem a lot, but it pays to be realistic. Annual premiums ($100,000) male age 30, $275, age 50, $770. The equivalent for females is approximately 15% lower.
A word of warning, premiums for smokers are considerably higher but most companies will reduce the premiums if you quit. We offer a free review of your existing policies, Life, Health, Dental, Vision and any relevant supplementals or riders to ensure that you are getting the best value from your investments in security. Talk to one our Advisors without obligation.
