Term Life

Term Life Insurance

What is Term Life?

Term Life Insurance covers your client for a period of time that is selected (for example, 10 or 20 years) and pays benefits only upon the death of the client during the time of coverage. Term Insurance is a basic and simple form of life insurance, and it is often referred to as temporary insurance. Basic Term Life Insurance policies do not accumulate cash value, which means if the client does not pass away within the time frame for which he or she is covered, the client’s estate does not collect any money from the policy when it ends. However, if the client does pass away during the term period, the value of the policy will be awarded to his or her estate.

Most people buy Term Life Insurance to replace income that would be lost if a wage earner were to pass away. Its proceeds are tax-free, and they can play a role in estate planning, cash accumulation, retirement funding, and the transfer of wealth to beneficiaries. A basic Term Life Insurance policy is one of the most affordable policies on the market today and proceeds are not taxable to beneficiaries. Are you wondering how much life insurance coverage is needed?

Your client’s life insurance needs may vary depending on his or her particular stage in life. This means that an unmarried person who doesn’t own a home may not need as much life insurance as someone who is married with children. As none of us want to leave financial trouble for our loved ones, it is important to remember to always help your clients evaluate what amount of coverage they need to make sure their dependents can continue to live the lifestyle they are accustomed to. As always, we are ready and available to assist you.

  • Term is only for a period and has death benefits. Whole Life is for life.
  • Term only pays if your client passes within the term benefits.
  • Term Life “terms” can be different: 5, 10, 15, or 30 years.
  • Whole Life: your client usually need to qualify a health examination.
  • Whole Life takes over 12 years to build up a decent cash value.
  • Getting Term coverage is easy.
  • Term coverage is for a limited period of time.
  • Term life is a good planning tool.
  • Term policy is very affordable.
  • Clients can also get their term premiums back.