Term Life Insurance

Term Life Insurance

Term life insurance provides coverage at a fixed rate of payments for a limited or specific period of time, the term. Unlike whole or universal life, the policy has a set duration limit on the coverage period. Once the policy comes to the end of its term, it expires, and it is then up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end.

Term insurance is purely risk protection and is not generally used for estate planning needs. It is designed for income replacement. A term policy provides a stated benefit upon the death of the policy owner, provided that the death occurs within the term. However, the policy does not provide any returns beyond that benefit that can be used for wealth accumulation. Simply stated, if the life insured dies during the term, the death benefit will be paid to the beneficiary.

Why choose term life insurance?

Term life insurance is often the most affordable coverage because it offers protection for a specific number of years. It is primarily use is to provide coverage for the insured’s financial responsibilities upon his or her death. These may include things like:

  • the mortgage
  • college education expenses
  • child care costs
  • payment of outstanding debts or loans
  • funeral costs

For example, an individual might choose to obtain a term insurance policy which expires near his or her retirement age based on the premise that, by that time the family home would be owned, the children would have finished their educations, and he or she would have amassed sufficient funds in retirement savings to have financial security.

Is term life insurance right for me?

A term life insurance policy helps give you and your loved ones protection from the unexpected. You know that if something happens to you, your family will have the financial protection they will need into the future. It is the most affordable and the easiest to understand. You specify the length of the contract in 5-year increments, and the policy provides basic protection for you and your loved ones.

Contact us today for a life insurance review

The experienced and trusted agents at Boizelle Insurance Partnership are happy to review your current life insurance protection and discuss the details of term insurance and whether it is right for you and your situation. Call today to talk to one of our life insurance professionals.