Best Term Life Insurance to Get
What is The Best Term Life Insurance to Buy?
If you’re in need of temporary life insurance protection you may be wondering which term policy is best for you and your family.
When it comes to choosing the right term plan you want to learn about your options and choose the coverage that meets your needs and fits your budget.
The most popular type of term life policy is Level Term because it is the most affordable, and offers guaranteed level premiums for a period of up to 30 years.
Types of Term Life Insurance Policies
- Level Term – The amount of life insurance remains level while the premiums stay the same for the entire duration (term) of your policy.
- Decreasing Term – The premiums remain level, while the amount of life insurance provided decreases each year throughout the life of your policy term.
- Return of Premium Term – Premiums are much higher than for standard term life plans, but you get almost all of your premiums returned to you if you outlive the duration of your policy.
- No Medical Exam Term – Qualified applicants may get approved for coverage without having to take any physical examination. Rates are higher than charged for term life that does require a physical examination.
NOTE: More than 90% of term life insurance policies are Level Term.
Additional Features:
- Renewability – Some term policies offer the option of renewability, which means you may choose to renew your term policy for an additional period (usually up to 10 years), when your current term life plan expires. Your renewal premium is based on your age at time of renewal.
- Convertibility – Some term policies offer the option for you to convert your temporary (term) coverage into a permanent life insurance policy that will last your entire lifetime. The premium is much higher than what is charged for a term life policy.
Additional Coverage:
- Spouse Rider – You may add a small amount of life insurance coverage for your spouse to your term life policy, for an additional premium.
- Child Rider – You may add a small amount of life insurance coverage for each of your children to your term life policy, for an additional premium.
Multiple Term Life Insurance Policies
Did You Know You Can Own More Than One Life Insurance Policy?
That’s right. In case your need for coverage changes over time as you take on more financial responsibilities; such as, getting married, starting a family, buying a home, etc.
With increased responsibilities, your need for life insurance may row, and you may decide it’s time to get a new or additional life insurance policy.
However, buying two or more term life policies at the same time may be just what you need to address specific life insurance needs and goals you wish to accomplish.
It’s called Laddering Your Policies.
Laddering Life Insurance Policies
Here’s How It Works:
You decide you want your life insurance to accomplish several different goals:
- Protect Your Home 30 Year Mortgage
- Provide for Your 8-Year-Old Child’s College Education
You’ll want one 30-year term life policy to protect your home mortgage loan, and a spate 15-year term life policy to provide funds to pay for your child’s education until the child is grown and out of college.
By purchasing two separate policies you aren’t buying one amount of life insurance for the 30-year period. So, you pay a lower rate per $1,000 of coverage on the 15-year term life policy, saving you money.
Laddering your plans allows you to provide increased coverage at a lower overall cost.
Life Insurance Statistics
About sixty percent of all people in the United States were covered by some type of life insurance in 2018, according to LIMRA’s 2018 Insurance Barometer Study. Other findings from the study include:
Among those with life insurance, about 1 in 5 say that they do not have enough.
Half of all adults visited a life company website and/or sought life insurance information online in 2018. Almost 1 in 3 purchased or attempted to purchase life insurance online — about the same as in 2017.
Consumers overestimate the cost of life insurance, especially younger generations; 44 percent of Millennials overestimate the cost at five times the actual amount.
Half of all consumers say they are more likely to purchase life insurance if priced without a physical examination.
Source: III.org
Who Owns Life Insurance?
More than half of American adults (57%) own some type of life insurance.
Source: LIMRA
What Prevents Consumers from Owning Life Insurance?
The top three reasons to not purchase (or to not purchase more) life insurance:
- It is too expensive (63%)
- Have other financial priorities (61%)
- Already have enough coverage (52%)
Millennials are the most likely to overestimate the price of term life insurance. Four in 10 of Millennials estimated the cost of a $250,000 term life policy for a healthy 30-year-old at $1,000 a year or more (actual average cost is $160 per year).
NOTE: Permanent life insurance cost up to 5-10 times more than term life insurance for the same amount of life insurance coverage.
Term Life Insurance Quotes
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