Let’s Talk Term Life Insurance
Here at Hermann Insurance, we want what’s best for you! Certainly when regarding Life Insurance and anything else your family needs. It is essential to know what you are shopping for and today, we will go over Term Life Insurance.
Life insurance can be confusing to shop for. It is crucial to understand the differences between term life and whole life insurance to make the best decision for you and your family.
The Cost of a Term Life Insurance Policy
Term life insurance costs less than whole life insurance, but it expires at the end of a specified “term.” The term could be as short as a year. Some terms policies last until you reach a certain age. The average length of a term is between 10 and 20 years. If you die during that time, the policy will pay the death benefit. But if you live beyond the term and the term expires, you get nothing from the insurance company.
Some Term Policies are More Flexible
Renewable Term
Renewable term policies allow you to renew your policy for another set term when your initial term ends. However, keep in mind that your premiums will likely be raised each time you take out a new term.
Convertible Term
Convertible policies can be converted into a whole life plan before the term’s expirations. However, it is difficult to qualify for this if you have any significant health issues.
Can You Cash In Your Term Policy?
No. Because it doesn’t build cash value like a whole life policy, there is no cash value if you decide to surrender it.
Qualifying for Term Life
Term life policies require a medical examination. The outcome of this exam may determine the cost of your policy and even whether you can purchase the plan at all. Other factors will affect the price and qualification, such as smoking, drinking alcohol, being overweight, or having other preexisting health problems.
How Much Coverage Can I Get with My Term Life Policy?
To decide which type of insurance you should purchase, you should consider what you need from your life insurance policy. The amount of coverage you can get will vary depending on what you are willing to spend and the qualification requirements of the policy. The independent insurance agents at Hermann Insurance can help you navigate the process of deciding which policy is best for you. Contact us today!
