What Kinds Of Term Insurance Are There?

Life insurance is one of the best safety nets that you can purchase for your loved ones. It’s one of the only ways that you can ensure that your loved ones have the money that they need, regardless of what happens to you. We know that finding the perfect insurance plan for your family can be a long and complicated process, but we are here to help.

Generally, there are two types of life insurance: term and permanent. Permanent life insurance policies are just that, permanent. The beneficiaries of your policy will receive the proceeds of that policy whenever you die.  What kinds of term insurance are there?  Term life insurance policies provide coverage for a set period of time. This period of time is the “term” and will often vary depending on how long a need for the insurance exists. If you want to insure a 30-year mortgage on your house the term of your policy would also be 30 years. If you are just starting a family and want to provide security for your children’s future and college education, a 20-year term policy may best meet this need. If your children are older, a 10 or 15-year policy may be most appropriate. Your beneficiaries will receive the proceeds of your policy only if you die during the term of the policy. When the term is over, the coverage expires and a new policy must be purchased if further life insurance needs exist.

term life insuranceTerm life insurance is sometimes considered as you would auto insurance or homeowner’s insurance. You certainly don’t want, or plan, to be involved in a car accident or experience a house fire. But these are unfortunate incidents that do occur and you are willing to bear a certain expense to be financially prepared to work through these difficult life events. Financial concerns aside, these times of trouble can be physically and emotionally challenging for a family. Without insurance, a large financial burden makes a sad and difficult situation much more painful and challenging to overcome. The strain of financial hardship can get in the way of healing and confront a family for years after an accident has occurred.

When you purchase term life insurance, just as with auto insurance, you hope that your policy is never redeemed, but the peace of mind you gain with a term life insurance policy can be even greater. When a life insurance policy is redeemed, a family is facing immense grief and loss. The loss of parent and spouse becomes unimaginable when the income they represented to the family is not accounted for. Your family’s security is your most important responsibility. You can feel comfort knowing that your family will be financially prepared in case of this unfortunate event.

The affordability and simplicity of term life insurance is attractive to many and it is often an economical way for a young family to meet their emerging life insurance needs. If you know you need to begin protect the life you are building for your loved ones, but have a tight family budget, term life insurance is the cheapest solution. At this point, what you need most is life insurance coverage to ensure your families financial well-being until your children reach adulthood. As your power to earn increases, permanent life insurance policies such as whole life, universal life and variable life will be more attractive. The lifelong coverage and cash value benefits permanent policies carry can become an important part of your financial investment portfolio. Term insurance is also the simplest to apply for and the easiest to understand. There is a term quoter on this page that will allow you to get started on the road to meeting your life insurance needs. In just a few minutes, you can receive quotes and be put in contact with a veteran life insurance agent who can help you to understand and obtain the life insurance coverage you need to protect your family.

What Kinds Of Term Insurance Are There?

There are different types of term life insurance policies designed to meet various life insurance needs. Level term life insurance policies are most common and have death benefits and premiums that remain the same throughout the length of the policy. Renewable term life insurance policies allow you to guarantee insurability for a period of time when you can renew your policy, annually or every five years, without being required to reapply for the coverage and a medical exam is not necessary. The premiums generally start out low, but will increase each time you renew as you get older. Convertible term life insurance allows you to convert all or part of your term policy to a permanent policy. You may have to convert within a certain time after you start your policy, or by a certain age. Once you convert your policy you will have all the benefits of cash value earning, permanent life insurance coverage.

Decreasing term life insurance has a death benefit that decreases over the life of the policy. These policies are often used to cover a mortgage or other debt. The length of the term of the policy would match the length of the mortgage or debt repayment schedule. The idea is that the benefit would be used to pay off the remaining balance of the debt. Increasing term life insurance has a death benefit that increases throughout the life of the policy.  This type of policy allows the insured to account for inflation with a benefit that increases according to a set schedule. The death benefit can also increase at specific life events such as marriage or the birth of a child. This allows your insurance policy to grow with your responsibility.

No Medical Exam Life Insurance Plans

Another option for term life insurance coverage is to purchase a no medical exam plan. As you can imagine from the name, these plans will allow you to get life insurance coverage without being required to take the medical exam. They are an excellent option for life insurance protection for anyone that’s been declined in the past. There are several advantages and disadvantages to these policies that you should be aware of when you’re looking to get insurance protection for your loved ones.

The biggest advantage is that anyone can purchase one of these plans, regardless of your health complications that you have on your medical record. Everyone deserves to have life insurance protection, and your health shouldn’t prevent you from getting it.

Another benefit to these plans is that you can be approved for coverage much faster than you can with a traditional life insurance policy. With one of these no medical exam plan, you can be approved for life insurance in a matter of days. With a traditional plan, you could wait up to one month to get life insurance. If you want to get life insurance as quickly as possible, these no medical exam plans are going to be the best option for you.

There are several significant pitfalls that comes along with these no medical exam plans. The most notable one is that they are going to be to be more expensive than a traditional life insurance plan that requires an exam. The purpose of the medical exam is to give the insurance company an idea of your overall health, which will show them how much of a risk you are to insure. Without that medical exam, they are taking a great risk to give you a life insurance plan, which is going to translate into higher premiums.

Another disadvantage is that you’ll be limited on how much life insurance you can purchase with a no medical exam plan. Most insurance companies will only let you buy around $250,000 of life insurance, which isn’t enough protection for most families. If you need more life insurance than that, you’ll have to purchase two plans or apply for a traditional plan.

Term Life Insurance

We know that finding the perfect term life insurance policy can be a confusing process, but it doesn’t have to be. The best way to ensure that you’re getting the perfect plan for you at an affordable price is to work with an independent insurance broker. Unlike a traditional agent, independent brokers work with dozens of highly rated companies across the nation.

Ever insurance company is different, which means that every company is going to offer different rates for your plan. Finding the perfect company could save you thousands of dollars on your insurance plan. Instead of wasting your time calling dozens of insurance companies, let us do all of that work for you and bring you all of the lowest rates.

There is a life insurance quoter to the left on this page that can help you get started in determining how much a life insurance policy will cost. We can help guide you with this decision and structure the plan that is right for you and your family. Get your instant quote to the left of this page or give us a call at 1-800-712-8519.  

About Ogletree Financial Services
About Ogletree Financial Services

As independent life insurance agents, we specialize in finding the best life insurance rates and policies for our clients.  Our customers are located all over the USA.  If you would like a personalized life insurance quote, you can start here on our website or give us a call at 1-800-712-8519.

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