Term life insurance is the simplest form of life insurance.
It is used to provide temporary life insurance protection on a limited budget. Since
term life insurance can be purchased in larger amounts for a relatively small initial
premium, it is well suited as coverage to pay off a mortgage loan, credit card debt,
or providing extra life insurance protection during the early stages of your life.
Term Life Insurance is considered to be pure insurance protection because it builds
no cash value.
Guaranteed level premium term life insurance, is where the premium is guaranteed
to be the same for a given period of years.
The most common terms are 10, 15, 20, and 30 years.
The premium paid each year is the same, and is based on the summed cost of each year's
annual renewable term rates, with a time value of money adjustment made by the insurer.
Therefore, the longer the term of the policy, the higher the premium, because the
older more expensive years to insure are already averaged into the premium. Meaning,
you will pay more per month for a 20 year term, than you would for a 10 year term.
Term Life Insurance Plans have come a long in recent years and can play a vital roll
in protecting your family, and loved ones.
Call us, you’ll be amazed at just how affordable Term Life has become.