Term Life Insurance

Who might use term life insurance?

Term life insurance is an ideal choice when you have significant obligations that have an end period. For examples, seeing your children through school. It will cover you for a specific period (10, 15, or 20 years), at a cost that might be lower than long-term protection. As a result, Term life has an expiration date on the policy, and premiums can significantly increase when it is time to renew.

What are the benefits of a Term Life Insurance policy?

family of three sitting together in living room
The benefits of a Term policy include a guaranteed death benefit, convertible, portable coverage that take you into a longer-term protection and in most cases, your beneficiaries will not pay income tax on the death benefit.

The earlier you start, the lower the premiums are. You can keep the premiums level for 10, 15, or 20 years or elect a yearly renewable Term policy which allows you to start low and then gradually increase, with the option to convert to Permanent/Whole Life insurance coverage that provides protection for life. Giving you greater flexibility.

Case Study: Raymond

family of four hugging with ocean in background

Raymond, age 50, owns a growing manufacturing company with 45 employees. His business has flourished over the past decade, but his personal financial planning has fallen behind. Raymond realized that if something happened to him, his family would face financial challenges because he was dramatically underinsured. His lifestyle and spending had increased with business success, and his family depended on the business income. It was obvious to him that there was no clear succession plan.

Raymond immediately contacted a Financial Professional to focus on a Business Ownership Transition Plan. He purchased a term life insurance policy with a disability rider to:

  • Cover short-term financial needs
  • Ensure his family could maintain their lifestyle
  • Protect his business from disruption

The policy provided Raymond with peace of mind, ensuring his family’s financial security. It also gave his business breathing room to continue operations or transition ownership smoothly. Additionally, he began saving more aggressively for retirement, knowing the insurance gave him a safety net.

Riders (add-ons) may be available to customize your Term life policy:

Disability Waiver Premium

Should you become disabled and find that you cannot make regular payments, the premium will be suspended until recovery.

Living Benefit

Should you become terminally ill, you can take a portion of the death benefit early to cover out-of-pocket medical expenses and/or other care resulting from terminal illness.

  • Term life insurance offers temporary protection for a critical period and is less expensive than Permanent life insurance.
  • Term conversion guidelines and limitations, such as timing, may apply; for example, there may be a ten-year conversion privilege for some products and a five-year conversion privilege for others.
  • Rider Insured’s Paid-Up Insurance Purchase Option in New York.
  • Not available in every state. There is a cost to exercise this rider. Products and riders are available in approved jurisdictions and names and features may vary.
  • Dividends are not guaranteed. Not all participating policy owners are eligible for dividends.