Term Life Insurance

Introduction

“Are you aware of the benefits and drawbacks of term insurance? Keep reading to learn more about this important coverage option.”

Old vs New Term Insurance

“When it comes to term insurance, it’s important to know the difference between old and new policies. Old-term insurance plans did not offer living benefits, while new ones do. This means that new term insurance policies can provide financial support while the policyholder is still alive, not just after they pass away.”

Group Life Insurance vs Personal Term Insurance

“Many employers offer group life insurance as a benefit, but these policies typically only provide coverage of $50k or $100k. To get additional coverage, employees may have to pay out of pocket. Additionally, group life insurance ends when the employee no longer works for that company. A personal term insurance policy, on the other hand, can be converted to a permanent life insurance policy with cash value.”

Term Insurance Duration

“Term insurance policies can last for a period of 10 to 30 years. This means that policyholders can choose a term that aligns with their financial goals and needs. For example, a 30-year term policy may be more beneficial for someone who wants to ensure that their family is financially secure in the event of their death.”

Converting a Term to a Permanent Policy

Most new Term Life Insurance policies can be converted to permanent policies. These new Term policies come with riders which include long-term care and policy conversion.  Pay attention on the conversion window of these policies.

For issue ages up to and including age 65:

The conversion period ends at the sooner of age 70 OR…

Term 10-G:     10 years from the issue date
Term 15-G:     12 years from the issue date
Term 20-G:     15 years from the issue date
Term 30-G:     20 years from the issue date

For issue ages over 65:

The conversion period ends 5 years from the issue date,
regardless of the term period.

Conclusion

“In conclusion, term insurance is an important coverage option that can provide financial support for your loved ones in the event of your death. However, it’s important to be aware of the differences between old and new policies, and between group life insurance and personal term insurance. By understanding these differences, you can make an informed decision about the right coverage for you and your family.” It’s also a good idea to consult with a financial advisor or professional to help you make an informed decision. Contact us today, at Wealth Financial Services & Products at 754-202-2300 or visit our Get a Quote, to set up a consultation. 

See below some examples of the cost of Term Life Insurance based on Sex-Age & Face Amount