Term life insurance policies provide insurance protection for a specified term or period of time The time period is typically one, five, 10, 15, 20 or 30 years or until a certain age such as age 65.
Life insurance premiums can increase each year (annual renewable term) or remain level for a set period of time (Level Term and Decreasing Term), and the term life insurance is generally less expensive than permanent (cash value) life insurance.
At the end of the term period the term life insurance policy may contain a provision allowing it to be renewed without a medical exam, although the premium rate probably will be higher with no exam.
Some term life insurance policies include an option to convert to a permanent life insurance policy. This may be called a Term Life Insurance conversion. The policy may be converted to Whole Life or Universal Life protection.
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Term life insurance is typically purchased by individuals who need insurance coverage for a temporary period of time (e.g. mortgage coverage) or for those who need a large amount of life insurance at the lowest possible cost available for possibly a short term loan at a bank.
Traditional term life insurance provides a death benefit only. The policies do not offer an opportunity to build cash values. A new product concept known as Return of Premium returns the cumulative premiums paid at the end of the level-premium period, if the policy is still inforce, and the policy also builds cash value in some cases.
These cash values with Return of Premium may return significantly more back than the money paid in to the policy as premiums.
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Universal life insurance policies provide the policy owner more flexibiltiythan whole life insurance offers. It provides the flexibility to choose both the amount of insurance to purchase and the annual premium to be paid with a range of potential premium choices.
As the life insurance needs change, the amount of coverage and premium paid can be adjusted subject to certain limitations.
Premium payments are credited to a cash value account where the money earns tax-deferred interest at a rate set by the company,which can be higher than the minimum rate guaranteed in the policy.
Life insurance policy expenses and cost of insurance charges are deducted monthly from this cash value account. Generally, cash values can be accessed by the policy owner through policy loans and withdrawals (charges may apply).
Indexed Universal Life insurance products provide interest-crediting rates linked to a stock market index, with the safety of a minimum guaranteed interest rate.
Policy owners can benefit from the growth of the Standard & Poor's 500 Composite Stock Price Index not to exceed an index cap rate declared by the life insurance company. When the index is down, policy owners earn at least a guaranteed minimum interest rate.
Universal life insurance products can offer a no-lapse guarantee to ensure that coverage will continue from the issue date for a specified period of time, as long as the minimum guaranteed premiums are paid.
These life insurance policies may be maintained with less than the guarantee premium and include a catch-up provision which allows the policy owner to catch up the guaranteed premium at any time if the policy is in force.
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A whole life insurance policy provides a guaranteed death benefit and guaranteed cash values. The premium may be level or may increase after a fixed period of time, but the premium will not change from the scheduled premium at issue.
Part of each life insurance premium payment is applied to the policy's cash value account, which grows on a tax-deferred basis¹.
In some cases, whole life insurance policies may also be entitled to policy dividends, declared from the insurer's surplus, and an excess-interest whole life insurance policy may earn an additional amount of interest after a specified period of time. Policy dividends and excess interest payments are not guaranteed.
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We offer a large variety of life insurance quotes, including preexisting conditions life insurance.
- Term Life Insurance
- Mortgage Life Insurance
- Level Term Life Insurance
- High Risk Life Insurance Plans
- Preexisting Conditions Life Insurance
- Guaranteed Acceptance Life Insurance
- Cancer Life Insurance
- Diabetes Life Insurance
- Whole Life Insurance
- Universal Life Insurance
- Child Life Insurance
- Family Life Insurance
- Individual Life Insurance
- Business Life Insurance
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