Term Life Insurance

 

What Is Term Life Insurance?

 

Term insurance is a type of life insurance that provides coverage for a certain length of time or a specified term of years as required.

 

If the insured person passes away during this time while the Term insurance quote USA is active, the insurer will pay out a death benefit to those nominated on the policy.

 

A term insurance policy is typically less expensive than a traditional or permanent life insurance policy as it does not have a cash value but a guaranteed death benefit payable.

 

More About Term Insurance Policies

 

There are a number of different types of term insurance available to choose from. These are known as level premiums for the duration of the policy term. A level term policy is set over a period of years such as 10, 20, 30 years and the policy cost is derived from the term and payable on a monthly basis.

 

Policies are underwritten by the insurance company on the basis of the person’s:

 

●     Health

●     Age

●     Gender

●     Weight

●     Life expectancy based on current age and health rating

 

A health exam may be required by some insurers to obtain a full health check of a person.

The policy will be assessed and accepted on the person's health status. If the health rating is poor, the policy will typically be refused. The premium will also be assessed based on the person's age and the amount covered for the term.

 

Policy coverage can also be later extended throughout a person's lifetime as required. If the policy expires and the person passes away, there will be no coverage and no death benefit paid out.

 

Types Of Life Insurance

 

We will cover the two most common types here:

 

Term Insurance

 

This insurance is offered in policy ranges of one, five, 10, 15, 20, 25 and 30 years. Coverage amounts can vary from tens, hundreds of thousands into the millions. The level premium cost is locked in for the duration of the policy.

 

An annual renewable policy is renewed each year and can be useful in covering short term debt or short term coverage.

 

The policy cost will remain the same for the term of the policy you choose for greater peace of mind.

 

 

Whole Life Insurance

 

This type of insurance policy lasts until you pass away. As long as the policy is paid each year, you are fully covered for the duration of the policy.

 

In the event of your death, your nominated beneficiary will receive a full pay out of the death benefit as you desire in your Will as a cash value.

 

You do not need to alter the policy during its currency but, it is typically a more expensive type of cover. You may also receive a dividend payment during the course of the policy from the insurer. You are not required to pay taxes on term insurance policies.

 

Arrange A Free Quote Here

 

To arrange a free online quote for term insurance via our insurance partner Ladder Life Insurance, complete the form below.