Term Life Insurance

Term Life Insurance policies do an excellent job of meeting immediate and fixed time period needs such as loans, mortgages or family protection. Premiums are guaranteed for the duration of the coverage, even the subsequent renewal years. Your policy automatically renews at the end of the “term” without your providing proof of health to the Insurance Company. However, the increase in premium or price can become substantial in later years, causing many people to terminate policies in their retirement years even though they may still have a need for insurance coverage. Also, it is important to remember that the majority of term policies will terminate coverage at age 75 or 80.

Term insurance is well-suited to meeting large, short-term protection needs for the lowest initial cost. For example, if you have purchased a home using a mortgage amortized over 25 years. A Term 20 Life Insurance Policy will cover the initial 20 years of your mortgage for the least amount of cost. Or perhaps you have purchased a new car that requires life insurance coverage, a 5 year or 10 year Term would be the answer for you!

Term Life Insurance provides you the option to later change or convert your current policy to a Permanent Life Insurance policy with the same Insurer without providing proof of health. Two important points to remember regarding conversion of a policy is:

• The insurance company usually offers a select number of Life Insurance contracts that you can convert to
• The Conversion privilege usually expires around age 65 or 70.