Term Life
Why buy term life insurance?
Term life insurance coverage is meant to replace your income for your loved ones should you pass.
A proper policy should provide your dependents with enough money to pay off, or at least keep up with, your mortgage, other debts, and provide ample living funds.
You’ll find that term is more affordable than whole life insurance. This is because the coverage carries an expiration date. The length of the policy is of your choosing but common terms are 10, 20, or 30 years.
Term policies are the best option for those looking for the highest death benefit at the lowest premiums.
As with all life insurance policies, an insurer can only cancel a term policy for non-payment of premium.
Some policies may include the option to convert to a permanent life insurance policy during a specified period.
How are premiums calculated?
Insurance carriers base their term life premiums off of your life expectancy. That’s why they get more expensive as you age.
With most policies, the premium stays the same throughout the term
What can the benefit be used for?
Your death benefit can be used for whatever your beneficiaries choose. This is why you must choose your beneficiaries carefully. You are allowed to choose multiple beneficiaries and split up the money as you see fit.
Term life insurance facts to remember
Once you purchase a policy, your coverage amount cannot change. If you find you need more coverage than the original amount, you’ll need to take out an additional policy to provide additional coverage.
If you outlive your policy term, the coverage ends and you must buy another policy of you still want to have life insurance. However, annual premiums at that time will be more expensive because of your advanced age and any new health conditions will be taken into account.
We at BTW Insurance will help you select a length of coverage appropriate for your age so your policy doesn’t expire at an undesirable age. We will also help you select an optimum amount that is both affordable and protects your loved ones. Our independent agency works with 25+ carriers so we are able to find options suitable to your coverage needs, budget, and desired length of coverage.