Healthcare American provides personalized insurance guidance for Medicare, life insurance, annuities, dental, vision, and supplemental coverage needs.
Our licensed agents help you compare options clearly so you can make informed decisions with confidence.
About Us
Term life insurance, also known as pure life insurance, is life insurance that guarantees payment of a stated death benefit during a specified term period.
Term life insurance is a great option for an individual or family that wants to pass on a death benefit to a spouse or loved one in case of their passing. It is considered the most popular and straightforward form of life insurance purchased.
This is because term life insurance is simple and easy to understand coverage, and offers an affordable clear benefit.
With term life insurance, coverage is purchased for a certain length of time, such as 10 years, 15 years, 20 years, 25 years, or 30 years. In some cases, coverage may be available for even longer, and shorter-term policy options may also be offered by many life insurance carriers.
Term life policies have no value other than the guaranteed death benefit. The policy’s purpose is to provide insurance protection against the loss of life.
All premiums cover the cost of underwriting insurance. As a result, term life premiums are typically lower than permanent life insurance premiums.
Term life policies have no value other than the guaranteed death benefit. There is no cash value element as is found in a whole life insurance product.
The policy’s purpose is to give insurance to individuals against the loss of life. This cash benefit may be used by beneficiaries to settle the policyholder’s healthcare and funeral costs, consumer debt, mortgage debt, or other financial needs.
Term life insurance is not typically used for estate planning or charitable-giving purposes. All premiums cover the cost of underwriting insurance. As a result, term life premiums are typically lower than permanent life insurance premiums.
Typically, when purchasing a level term life insurance policy, the amount of the premium will remain the same throughout the period specified that the policy is in force.
Provided that the insured survives throughout the policy, and he or she wishes to remain covered by life insurance, they will need to re-qualify for a new policy at their then-current age and health status.
At that time, the premium on a new life insurance policy may be quite a bit higher. In some cases, a term life insurance policy may have an option to convert the coverage into a permanent life insurance plan.
On some types of term life insurance, the death benefit will go down over time. These are known as decreasing term life insurance policies. The premium, however, will usually remain the same.
With a decreasing term policy, the policy ends when the death benefit reaches zero. An individual may want to purchase a decreasing term life insurance policy to cover the balance of an unpaid mortgage.
Each year, as the amount of the mortgage balance decreases, so does the amount of the insurance coverage, until eventually both will end.
There are also term policies where the death benefit increases over time. Often, this benefit will be purchased as a cost-of-living rider on the policy. A young parent may consider this type of policy as their coverage needs increase.
Term life policies are ideal for people who want significant coverage at low costs. Whole life customers pay more in premiums for less coverage, but have the security of knowing they are protected for life.
While many buyers favor the affordability of term life, paying premiums for an extended period and having no benefit after the term’s expiration can be an unattractive feature.
Upon renewal, term life insurance premiums increase with age, which may make new premiums cost-prohibitive. Renewal term life premiums may be more expensive than permanent life insurance premiums would have been at the issue of the original term life policy.
Making the right choice when it comes to your life insurance needs and deciding on the right type of policy for your family is an important decision. This decision may affect the rest of your life and the lives of your beneficiaries.
We at Healthcare American are specialists in the insurance business and can help you build the right insurance coverage for your individual needs.
Give us a call, and we can help you build a solid insurance portfolio.
Term life insurance is life insurance that guarantees payment of a stated death benefit during a specified term period, as long as the policy terms are met.
No. Term life insurance provides pure death benefit protection only and does not build cash value like some permanent life insurance policies.
Common term lengths include 10, 15, 20, 25, and 30 years. Some carriers may offer shorter or longer terms depending on the policy and applicant.
Depending on the policy terms, you may be able to renew for another term, convert the policy to permanent coverage, or allow the policy to terminate.
Term life insurance is often affordable because it provides death benefit protection only and does not include a cash value component. Premiums are usually lower than permanent life insurance premiums.
Decreasing term life insurance is coverage where the death benefit goes down over time. It is sometimes used to help cover a decreasing financial obligation, such as a mortgage balance.
Some term policies may include an increasing death benefit, often through a cost-of-living rider. This may be useful when coverage needs are expected to grow.
Term life insurance may be a good fit for individuals or families who want significant death benefit protection for a specific period at a lower initial cost.
Speak with a licensed insurance agent about Medicare, life insurance, annuities, dental, vision, and supplemental coverage options.
Send RequestWe want to be your resource for insurance, helping you compare Medicare, life insurance, annuities, and supplemental coverage options.
Subscribe for helpful Medicare updates, insurance reminders, and coverage guidance from Healthcare American.
