What is the meaning of Term Insurance?
A Penn State study completed in 1993 said that less than 2% of all term life policies paid a death claim, and that less than 10% of all term policies stayed in force during the entire initial term period.
What is the meaning of Term Insurance?
Term insurance is temporary coverage that provides financial protection at the most affordable rates. It has no cash value. Whole Life insurance policies have cash value. I will explain Whole Life Insurance in another blog.
The "term" is the length of time your term policy provides life insurance protection on your life. The most common is a 20-year term.
If you pass away during the term of your policy, your beneficiary receives a death benefit pay out from your life insurance free from federal income taxes.
Why does term life insurance cost so much less than permanent life insurance?
Most people will outlive their term policy!!!!! When the term approaches the end, people have the option to renew the term. By that time the premium (monthly payment) is so high that most people do not renew.
On average, a life insurance company may expect to pay out a death claim on a term life policy for about 1 out of every 100 people insured.
What factors impact my rate for term life coverage?
The main factors that will affect the rate for term life insurance are age, health, the amount of life insurance & the length of your term.
Other risk factors include lifestyle choices such as tobacco use.
Who would benefit from term life insurance?
Do you want to maximum coverage for a great price? If your budget doesn’t allow for a higher premium payment, begin with term insurance and convert it to whole life as soon as your budget allows. This must be done during the “term”. Not all companies allow a conversion privilege!!!!
How do I get a quote?
If you want an estimated cost. Contact me at 361-655-8083 for a FREE quote. National Farm Life offers several different term products. Depending on age, level term life insurance protection is available for 10, 20 or 30 years.