FAQ about Term life insurance
What is Term Life Insurance?
Term insurance policies provide affordable, temporary coverage. This product is good for a certain term that you determine up front. The premiums are level for the time frame of your policy, for example 10, 15, 20, 30 years and will remain in effect for the duration of that period.
Why Term Life vs. other types of Life Insurance?
The best feature of Term Life Insurance is that it is super affordable. It's also the best way to get a large policy for a little amount of money. Most often you can afford 10x the coverage with a term policy vs. a permanent policy. Many of our clients have a large term policy while keeping a smaller more affordable permanent policy.
What is Return of Premium (ROP) Term Life Insurance?
You'll pay extra for a regular Term Life Insurance policy, but if you don't die after the guaranteed term period is over, you'll get back the money you paid in for the policy (the Insurance company invests your extra premium for capital growth, enabling them to return your premiums to you at the end of the premium period).
Who should buy Term Life Insurance?
Anyone who has a spouse or children that depends on them for any kind of financial security, including paying only part of the living expenses. Even if you're a stay at home parent, and your spouse earns all the income, consider the cost of child care, and your final expenses, should you pass unexpectedly.
Business owners. Leaving a tax free lump sum of money to your business will ensure your employees' job security and continuity of business while family and beneficiaries can navigate their grief, as well as the probate process.
Philanthropists. The easiest way to give to your favorite charities and causes is actually through a life insurance policy, not a will. Wills can be contested, and all moneys therein are subject to the probate process. Life insurance monies are tax and probate free.*
Reach out to us any time if you have any more questions!
*This is a general statement based on current federal tax code. We are not attorneys. We are not CPA's.
What is Term Life Insurance?
Term insurance policies provide affordable, temporary coverage. This product is good for a certain term that you determine up front. The premiums are level for the time frame of your policy, for example 10, 15, 20, 30 years and will remain in effect for the duration of that period.
Why Term Life vs. other types of Life Insurance?
The best feature of Term Life Insurance is that it is super affordable. It's also the best way to get a large policy for a little amount of money. Most often you can afford 10x the coverage with a term policy vs. a permanent policy. Many of our clients have a large term policy while keeping a smaller more affordable permanent policy.
What is Return of Premium (ROP) Term Life Insurance?
You'll pay extra for a regular Term Life Insurance policy, but if you don't die after the guaranteed term period is over, you'll get back the money you paid in for the policy (the Insurance company invests your extra premium for capital growth, enabling them to return your premiums to you at the end of the premium period).
Who should buy Term Life Insurance?
Anyone who has a spouse or children that depends on them for any kind of financial security, including paying only part of the living expenses. Even if you're a stay at home parent, and your spouse earns all the income, consider the cost of child care, and your final expenses, should you pass unexpectedly.
Business owners. Leaving a tax free lump sum of money to your business will ensure your employees' job security and continuity of business while family and beneficiaries can navigate their grief, as well as the probate process.
Philanthropists. The easiest way to give to your favorite charities and causes is actually through a life insurance policy, not a will. Wills can be contested, and all moneys therein are subject to the probate process. Life insurance monies are tax and probate free.*
Reach out to us any time if you have any more questions!
*This is a general statement based on current federal tax code. We are not attorneys. We are not CPA's.