What Is Term Life Insurance?
Term life insurance is a type of life insurance that is only in effect for a specified term – such as 10, 20 or 30 years – and will only pay the death benefit if the covered person dies during that term.
When the term expires, you can either renew it for another term, switch to permanent coverage, or let it end completely.
Cash Value
Unlike whole life insurance, term life insurance does not build a cash value that you can borrow against. If this is an important feature to you, consider paying the higher premiums associated with whole life insurance instead.
How Does Term Life Insurance Work?
Getting term life insurance is straightforward. There are two major steps:
Choose the duration of coverage: Determine the number of years your financial need will be the highest, such as when your children are too young to support themselves or you are paying off a mortgage.
Determine the amount of coverage you need: Think about how much money your loved ones would need to get in a payout to replace your income if you pass away.
At Burton & Company, we can help you make these calculations and ensure you’ve considered all the important factors.
Our Term Life Insurance Coverage
At Burton & Company, we offer several types of term life insurance. Here is a look at some of the most popular options.
Level Term Or Level Premium Policies
These policies will cover you for a specified period that is typically somewhere between 10 and 30 years, and both the premium and death benefit will be fixed.
Yearly Renewable Term Life Insurance Policies
A yearly renewable term policy will not have a term that is specified in advance. Instead, it can be renewed every year without the need to present evidence of insurability. However, the premiums will change each year, increasing as you age.
Decreasing Term Life Insurance Policies
A decreasing term policy will have a fixed, level premium throughout its duration, but the death benefit will decline every year according to a predetermined schedule. In many cases, this type of policy will be used in conjunction with a mortgage so that the coverage aligns with the declining principal of the home loan. This is useful for people who do not want their beneficiaries to struggle to pay for a mortgage if they pass away before it is paid off.
How Much Does Term Life Insurance Cost?
The factors that are generally used to determine the premiums of term life insurance include:
- The payout amount
- Age
- Gender
- Overall health
Other factors that are sometimes considered:
- Physical exam results
- Driving record
- Smoking status
- Family history
- Occupation
- Current medications
Term life is more affordable than the more popular whole life insurance, but it only provides coverage for a set number of years.
Talk To The Life Insurance Team At Burton & Company
Make sure your family is protected financially if you pass away unexpectedly with term life insurance from Burton & Company. Reach out today by phone at (888) 652-1325 or request a quote online to learn more about how we can help you provide financial peace of mind for your family.
