Term life insurance is one of many options you have when it comes to purchasing a life insurance policy. It is unique in the duration the policy is active and how the premiums are structured.
What Is Term Life Insurance?
Term life spans a finite period of time instead of the rest of your life. These often last between 10-30 years.
If you purchase a term life insurance policy, your loved ones will get a death benefit if you pass away during that time. If you outlive your policy, your loved ones will not get the death benefit.
The premiums are also notably cheaper than that of whole life policies. Whole life insurance premiums can cost ten times the amount of a term life insurance monthly premium (e.g. a term life policy with a $250,000 death benefit may cost an individual $30 per month, but a whole life policy of the same size may cost $300 per month).
What Are My Options?
Aside from the length of time the policy is active, you also have the freedom to choose how you want your premiums to be structured.
There are three types of term life insurance to choose from:
- Yearly Renewable Term (YRT)
- Decreasing Term
- Level Term
YRT policies give policyholders the advantage of an extended time window. There’s no set number of years, and with YRT, you aren’t required to prove insurability when it comes time to renew your policy. Despite this, you will face higher premiums over time to make your payments roughly equal to those in your age group. The difference is that when the term ends, age isn’t going to result in denial.
Decreasing term policies have steady premiums, but the death benefit decreases over time. This type of policy is often purchased for asset protection instead of leaving behind a small fortune for beneficiaries.
Finally, level term policies are what most think of when discussing term life insurance. The premiums stay the same throughout the life of the policy, but you will need to renew your policy or explore other options once it expires.
Get Your Term Policy Today!
At Game Changing Benefits, we work with you to get you the best policy – and the best deal. We value you and your needs and provide an array of options so that you can get the term life policy you desire. Call us today at 972-331-1060.