Term life insurance is affordable, easy-to-understand coverage that gives you flexible protection.
Your insurance costs will remain the same for a specific period of time (the "term"), until it renews for another term. If you die while the policy is in effect, a tax-free payment will go to the person or people you name (your "beneficiaries"). And with most term policies, you can also convert your coverage to permanent insurance regardless of any changes to your health, occupation or lifestyle.
Affordability
Term insurance provides a large amount of insurance protection for a relatively low premium. If you have a financial need for insurance coverage during a specific time period find term insurance particularly cost-effective. The fixed term creates a lower cost of insurance that translates into level and lower premiums when compared to other life insurance products.
Tax-free death benefits can bypass probate
The proceeds of a term insurance policy can be paid directly to the named beneficiary tax free, bypassing the estate and the delays and expenses surrounding probate.
Creditor protection
Provided certain family relationships exist between the life insured and beneficiary or that a beneficiary designation is irrevocable, term insurance policies may be protected from the claims of creditors of the policy owner.
Multiple lives covered on one policy
Almost all companies allow for more than one person to be insured on a single life policy, each with their own coverage and beneficiary designation. This allows business partners or family members to be covered on the same policy, reducing cost through a single policy fee and centralized billing.
Conversion Options
You have the choice of a fully-convertible term policy. Convertible policies are often eligible to Universal Life or Whole Life a permanent plan without providing evidence of insurability.
Renewable Option
You have the choice to renew the term policy at the end of your policy’s term expiry without providing evidence of insurability. Pricing will be based on your attained age for the new term continuation.
Joint life coverage
Term insurance can be purchased on multiple lives, with the death benefit payable on first death or the last death, depending on the clients particular needs. This reduces costs as compared with purchasing individual coverages.