Term Life Insurance
Common Features of Term Life Insurance Plans
- An equivalent amount of term life insurance is generally less expensive than permanent life insurance.
- Life insurance coverage is provided for a specified number of years from the date of issue of the policy. Face amounts may be level or decreasing.
- The premium amount is partially based on the age of the insured when the policy is issued, so premiums are lowest at the youngest issue ages. Once the premium amount is determined at issue, it remains level throughout the specified term of the policy. Some policies are automatically renewable for one or more renewal periods (terms). The premium during a renewal term is higher than what was paid during the previous term but stays level throughout that renewal period.
- Term life insurance policies do not generally build any cash values or qualify for dividends.
- The death benefit is usually paid tax-free to beneficiaries and avoids probate.
- Term life insurance is appropriate for people with temporary insurance needs, such as coverage for a mortgage or other debt that terminates in a specified period, and to cover needs of dependents that will cease when the dependents are on their own. It may also be a way to start a basic life insurance program when permanent insurance is too expensive, or to supplement existing permanent insurance.
- Term policies may be convertible to permanent life insurance without evidence of insurability. This is a very important feature because it means that coverage can be extended even if the insured has experienced a change in health.
Woman’s Life Insurance Society® Offers Two Term Life Insurance Plans
For more information, request a free, no obligation needs analysis with a Woman’s Life representative.