How Does Term Life Insurance Work?
Term Insurance is one of the most popular options when it comes to life insurance. One of the reasons term insurance is so popular is because it is relatively inexpensive, allowing individuals to obtain policies with high coverage amounts for affordable premiums. Moreover, there are no complicated details to decipher, which allows consumers to find these policies easy to understand. With the many different options available, you can find the coverage you want at a price that is affordable for virtually everyone in the market.
All term life insurance policies are valid for a specific period of time. The death benefit is paid to the beneficiaries if the applicant passes away during the period in which the policy is active. For example, it is common practice to underwrite these policies for periods of 1 year, 5 years, 10 years, 15 years, 20 years, 25 years and 30 years. There are even policies that can be underwritten to cover individuals past the age of 100.
With so many options available, contact us at Advisors Insurance Direct to find out more and to get your own personal term life insurance quote.
Benefits of Term Life Insurance
There are many reasons why people choose this type of life insurance over the other alternatives. For example, it could be that they want to ensure their children are protected during the school years, but then stop coverage once they have reached an age of maturity or maybe once they have completed their college education. Or they may want to ensure coverage for the purpose of insuring the key employee of their business, buy-sell agreements or even for the purpose of estate tax liquidity.
Some of the advantages of this type of life insurance policy over other alternatives include:
- Lower Initial Costs
- Flexibility and Adaptability
- Straightforward Configuration
- Less Bureaucratic Hurdles
When choosing your policy, you should keep in mind that term life insurance may not be for everyone. However, for many it acts as a great way to start exploring this and other options that are available in the market. With some policies, you can even purchase a term policy for a specific period of time, and then convert it to a Permanent policy at a later stage in your life as your requirements change.
Important Term Life Insurance Considerations
It is important to acknowledge and understand a few key factors that are unique to term life insurance. For example, the policy will only be in-force for a set period. Therefore, should you die after the expiration date, the coverage may lapse. Experienced hands-on Advisors will be able to guide you through this process to make sure these contingencies are addressed.
Another factor to consider is an insurance policies maximum issue age. This is normally around 80 years old. Some more specialized policies may be written up to age 90. The term life insurance experts at Advisors Insurance Direct are available to help you navigate the various clauses of any policy to ensure that you are fully informed and make the best decisions.
Learn More about Term Life Insurance
Shopping for term life insurance can sometimes seem overwhelming for the first time buyer. Do not let the fear of sifting through technicalities, terms, and conditions scare you from ensuring your family’s or businesses well-being and future. Call our team of advanced degreed experts today to learn more and get your own term life insurance quote.