Term life insurance provides you protection for a specific price over a specified period of time: usually 10, 15, 20, or 30 years. Coverage expires without value at the end of the term and you will need to either convert your policy to a permanent life insurance plan or purchase a new policy for a new term. Term life insurance pays out a specified lump sum to a beneficiary only in the event that you die before the policy expires. Term life insurance is somewhat less expensive than permanent live insurance due to the drawback of having an expiration date.
Different types of term life insurance are available for you. G. A. MacDonald Associates can modify a plan to fit your needs and provide you the maximum amount of protection for the least amount of premium.
- Annual Renewable Term– The death benefit is a level amount and will remain the same for the term period. This policy can automatically be renewed without having to provide evidence of good health each year. The premiums may however increase each year with age.
- Level Term – The death benefit is a level amount and will remain the same for the term period. Level term policies are usually purchased for a period of 10, 20, or 30 years and the premium generally remains stable over the entire period.
- Decreasing Term – The premiums remain level over a specific term, but the amount of death benefit protection decreases throughout the term. Decreasing term insurance is best for you if you have financial obligations that decrease over time such as a mortgage or a loan.
Contact an experienced insurance professional today to see if term life insurance is right for you.