Term Life Insurance
When you know you want to provide life insurance benefits to your loved ones in the event you die prematurely, it's easy to find yourself confused by all of the different types of policies, and policy options, available.
Term life insurance can be an affordable way to provide some financial protection for a specific period of time.
​
What Is Term Life Insurance?
Term life insurance coverage is just what it sounds like: life insurance for a specified policy term. The coverage is in effect for a term of years that you choose up front, usually ranging from 10-30 years. If you die while the policy is in force, the insurance company pays death benefits to your named beneficiaries.
Why Do I Need Term Life Insurance?
The number one reason for purchasing term life insurance is to provide peace of mind to your loved ones. If you were to die prematurely, would your loved ones be able to maintain their standard of living? Term life insurance can provide a cash death benefit that could be used to pay your final expenses, including the expense of a funeral service, a remaining mortgage balance, children's education expenses, or paying ongoing expenses after your death.
How Does Term Life Insurance Work?
Like other types of life insurance, term life insurance starts with an application for coverage with an insurance company. Once a policy is in force with the company, you pay monthly, quarterly or annual policy premiums to maintain coverage. If you die during the specified policy term, the insurance company pays the specified death benefit amount to your named beneficiaries.
-
What is the difference between mortgage protection insurance and homeowners insurance?Mortgage Protection Insurance: • Makes your premiums in case of job loss* • Money goes to your family • Pays your mortgage if you become sick or injured • Money your family receives is tax free • Is portable – new home? It travels with you *Available in most states. Limitations may apply. Benefits and carriers will vary for coverages and are subject to underwriting approval, product limitations and availability. Home Owner's Insurance • Damage to your home in severe weather and water conditions • Theft of your belongings • Vandalism of your house and property • Fire damage to your home • Personal injury lawsuits if someone gets hurt on your property
-
Do I qualify for mortgage protection insurance?In most cases, yes! Mortgage protection insurance has a very high acceptance rate as most plans are offered with simplified underwriting (you won’t have to take a medical exam to qualify).
-
When should I buy mortgage protection insurance?If you have a mortgage on your home, or if you are in the process of obtaining a mortgage, you should consider buying mortgage protection insurance.
-
Can I afford mortgage protection insurance?Mortgage protection is one of the most inexpensive types of insurance, and it’s often a more affordable option than purchasing a separate whole life policy to pay off your mortgage in the event of your death.