The Most Affordable Life Insurance Rates with Term Coverage

Term life insurance policies offer a specified amount of time coverage. With terms ranging from one to thirty years, it’s typically more affordable than whole life insurance. Still, it expires if you don’t pass away within the coverage time.

Term life insurance is intended to help replace your income if you pass away prematurely. For example, money can be used to help your beneficiaries pay for your mortgage, education costs, or to supplement the loss of your income.

Choose the Right Term to Protect Your Family

As with any policy, term life insurance has advantages and disadvantages. If you are looking for quality coverage to protect your family, term life insurance may be the right option for you. If you pass away while your term life insurance policy is in force, your beneficiary will receive your total death benefit to cover ongoing expenses.

Advantages of Term Life Insurance

One of the most significant advantages of term life insurance policies is the rates. Since coverage expires after a set time, rates are usually lower than whole life policies. Some policies even offer a return of premium, returning all or part of the money you paid into the policy when your term ends. For example, some policies include a 50% to 100% of premium return.

When shopping for a term life policy, you have options. In addition to the affordable rates, many term life insurance policies can be converted to whole life coverage at the end of your term. This is an excellent option for individuals looking to save money in their younger years. You can choose from ten, 15, 20, 25, 30, or 40-year terms. Many companies also allow you to select custom terms. Although some companies do offer a "Return of Premium" (ROP) or Cash Back "CB" options. For example, a 35 year old Male requests a term policy $250,000 for 30 years with a ROP. After 30 years, he will receive the total premiums paid of $49,874.00.

Disadvantages of Term Life Insurance

The most significant disadvantage of choosing term life coverage is that it expires. That means if you don’t pass away within the term, your coverage ends and you don’t get any money back. When your term ends, you may have the opportunity to renew or purchase a new policy. Talk to your life insurance broker to determine whether term insurance is right for you and your family.

What Happens When My Term Ends?

If you pass away while your term life insurance policy is in force, your beneficiary will receive the death benefit. However, if you do not pass away during the term, no one will receive the death benefits. Most premiums are nonrefundable unless your policy includes the “return of premium” option.

If your policy is renewable, you have the option to extend your coverage at the end of your term. If your term policy is convertible, you may have the opportunity to convert your coverage to a permanent life policy. Talk to your insurance broker to discuss your options and find the right policy for your specific needs.

How Much Does Term Life Insurance Cost?

Term life insurance policy rates vary based on several factors. In addition to the type of policy and the length of your term, most companies consider your age and health at the beginning of the term. Older individuals and those with declining health typically pay higher rates. This is why securing your life insurance policy early on can be incredibly helpful in protecting your financial assets and the future of your loved ones.

Trust Life Insurance by Monique Navarro to Protect Your Loved Ones

Buying life insurance is a crucial step in securing your family’s financial future. Death is inevitable, but finding the right life insurance policy can ease the financial burden of your loss. At Life Insurance by Monique Navarro, our independent life insurance broker works with various insurance companies to find you the best rates and coverage options for your needs.

Consult with us today to determine whether term life insurance is the right option for your peace of mind.