TERM LIFE – as suggested in the name itself – is for temporary coverage: if you need to cover your mortgage, debt or other large temporary obligations – for example: get term life until your mortgage is paid off or children become independent.
To keep Term Life insurance low cost, an applicant will qualify by answering a few medical questions.
Key TERM LIFE info:
- Benefits from $25,000 to $2,000,000
- Cheaper than Whole Life for similar coverage amount.
- Has an expiration date (10, 15, 20 or 30 years) – renewal after it expires will be priced at your age at that time – if you still qualify!
- Harder to qualify – have to answer a long list of medical questions
- Can include living benefits (like “Accelerated Terminal Illness rider”) – some benefits need to be requested by insured as they cost extra.
- Other LIVING BENEFITS: – disability income rider, cancer and critical illness benefits rider, long-term care rider;
- Can include a REFUND OF PREMIUM rider – per your request – to refund all premiums paid if you outlive the term policy. This benefit usually increases the initial premium, but refunds all premiums paid at the end of the term if u=insured is still alive at that time.
Below are a few sample rates for people in good health without major medical history.
