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All You Need to Know About Term Life Insurance

Term life insurance is a type of life insurance that provides income coverage to a beneficiary in return for a fixed rate of payment – and only during a limited period of time. The death benefit is typically tax free. Its primary use is to provide coverage of financial responsibilities for the insured or his or her beneficiaries. Such responsibilities may include mortgage or automobile debt, daycare, post-secondary education for dependents and funeral costs.

Limited Period of Time

“Term” refers to the limited period of time that the death must occur in order for the insurance benefit to be paid out. Most people only need income coverage anyway until the time they are able to retire and their home is already paid off. Typical policies are set between 10 and 30 years.

Affordable

Term life insurance is often the most affordable life insurance coverage option. It’s dependable, low cost and payment amounts typically won’t change for the period selected.

Differences

The premiums for term life insurance are usually not adjustable and the policy does not build cash value. Although some policies allow for an increase in premiums during the policy period and significantly more expensive policies allow portions of the premium to be refunded if no claim was made.

These are reasons that one may prefer to purchase universal life or whole life insurance or to purchase one of these in addition to term life insurance. Let us help you determine your wants and needs during a full no-obligation insurance review. As your dedicated agent, we want to continuously help you through the stages of life to make the choices that will benefit for your family for years to come.

If you want someone who will sit down with you, and explain the details you need to know, call us today at (512) 710-2185 or schedule an insurance review.

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