Life Insurance

If you are paying for your child’s tuition with your own income then it is recommended that you obtain a life insurance policy. This way your child will have the money to continue their education in the event of your death. Term life insurance is a great option because it is a relatively inexpensive form of life insurance and you can choose how long you want the policy to last. A good idea is to buy a term policy that will last until after your child’s college years.

Health Insurance

If your child is off to college for the first time then it is likely required by the school that your child obtains a health insurance policy. The college may offer its own health insurance plan, but make sure to understand the policy completely before committing to the plan. Keep in mind that plans have varying deductibles, out of pocket maximums, drug benefits, and doctor networks. Aside from policies offered through the school, there are plans available through the health insurance marketplace. Open enrollment starts Nov.1, 2016 and ends Jan. 31, 2017.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process and any assistance you may need thereafter. Contact us today and get the health insurance or life insurance coverage that is right for you!

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• Protective Life: Total Premium is $433.00 annually.
  Analysis: This quote is very competitively priced. The cost is only $433.00 a year, which is just $36.08 a month. Underwriting for this product requires a motor vehicle report and a paramedical exam, which includes a blood profile and a urinalysis. Protective Life has an A+ rating from A.M. Best ratings agency.

• Principal National Life Insurance Company: Total Premium is $445.00 annually.
  Analysis: This quote is very competitively priced. The cost is only $445 a year, which is just $37.08 a month. Principal also has an accelerated underwriting program for all of their life insurance products, which allows certain applicants to bypass having to take a physical exam in order to qualify. Principal has an A+ rating from A.M. Best ratings agency.

• Metlife: Total Premium is $449 annually Analysis: This product is competitively priced. The cost is $449 year, which is approximately $37.41 per month. Underwriting for this product includes a paramedical exam, which includes a blood profile and a urinalysis. Metlife has an A+ rating from A.M. Best ratings agency.

• John Hancock: Total Premium is $454 annually. Analysis: This product is competitively priced. The cost is just $454 per year, which is $37.83 a month. Underwriting requires a paramedical exam. John Hancock has an A+ rating from A.M. Best ratings agency.

• Banner: Total Premium is $459.99 annually. Analysis: This product is competitively priced. The cost is just $459.99 per year, which is approximately $38.33 per month. Underwriting for this product includes a motor vehicle report and an abbreviated paramedical exam, which includes a blood test and a urinalysis. Banner has an A+ rating from A.M. Best ratings agency.

• Nationwide: Total Premium is $465 annually Analysis: This product is competitively priced. The cost is $465 per year, which is approximately $38.75 per month. Underwriting for this product includes a paramedical exam. Nationwide has an A+ rating from A.M. Best ratings agency.

• United of Omaha: Total Premium is $482.50 annually. Analysis: This product is priced a little higher than other top rated carriers. The cost is $482.50 per year, which is $40.20 per month. Underwriting for this product includes a paramedical exam. United of Omaha has an A+ rating from A.M. Best ratings agency.

• Transamerica Life Insurance Co.: Total Premium is $550 annually. Analysis: This product is priced a littler higher than the other top rated carriers. The cost is $550 per year, which is approximately $45.83 per month. Underwriting for this product includes a motor vehicle report and a paramedical exam, which includes a blood test and a urinalysis. Transamerica Life Insurance Co. has an A+ rating from A.M. Best ratings agency.

Final Analysis on quotes for 35 year old:

As you can see, term insurance can be very inexpensive. The quote from Protective Life was the least expensive quote. However, the quote from Principal National Life Insurance Company was only a dollar more. Principal offers an accelerated underwriting program which would potentially make it worth while to go with Principal instead of Protective Life. Therefore, the lowest quote is not always the very best option. Pricing is very important but it is good to have a broker that has knowledge of the underwriting standards of each company. Ideally, you want to go with the company that is the best combination of four criteria.  1. Best pricing. 2. Easiest underwriting 3. Quickest underwriting 4. Best financial ratings. An experienced broker can help you compare quotes and find the best overall product for you.

Term Life Insurance Companies for a 50 Year Old

• Lincoln National Life Insurance Company: Total Premium is $1,688 annually. Analysis: This is one of the most competitively priced quotes for this age group. Lincoln was not one of the lowest prices for the 35 year old. Lincoln National Insurance Company has an A+ rating from A.M. Best ratings agency.

• Protective Life: Total Premium is $1,697.50 annually. Analysis: This quote is competitively priced. Similar to the 35 year old quotes, Protective is offering one of the lowest prices available.

• John Hancock: Total Premium is $1,710 annually. Analysis: This quote is competitively priced.

• Principal National Life Insurance Company: Total Premium is $1,710 annually as well. This product has an accelerated underwriting program to qualified applicants.

Final Analysis on quotes for 50 year old male:

As you can see. Lincoln National Life Insurance Company is the best priced option for the 50 year old. In terms of price, Lincoln was not even in the top ten for the 35 year old. This demonstrates that different companies are better priced for some age groups and not others.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter. Contact us today and get the coverage that is right for you!

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The 60 minutes episode this week was called ‘Not Paid’. It shined a light on how  life insurance carriers have been avoiding paying claims. Even well known companies like John Hancock, Metlife, and Prudential were named as having failed to pay out to deserving beneficiaries. An investigation has shown that the number of policies that were not paid were in the millions and occurred over many decades. These policies amount to billions of dollars in unpaid claims nationwide.

The Bottom Line

The policies that were not paid all had one thing in common. The beneficiaries never came forward to make the death claim. In most of the cases, the beneficiaries just did not know of the existence of the policy or had forgotten about it. The insurance carriers are in trouble because in many cases, the carrier had actual knowledge that the death of their client had occurred. But, because there was no formal death claim submitted by the beneficiary the carriers simply did not pay the claim and essentially pretended that they did not know about the death.

Lessons Learned

Treat your policies like a piece of fine jewelry. Keep them in a safe place that you can check on easily. Many people buy life insurance and forget what they have because they lose the paperwork. If this has happened to you then make sure to call your broker or the company that you bought the policy from to get another copy of the documents. Also, the most important lesson in all of this is to make sure to let your beneficiaries know that you have a life insurance policy with their names on it. Make sure they have a copy of the policy or at least know where the policy is located. This way they can formally submit the claim when that time comes.

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Term Insurance Rates for a 30 Year Old

A healthy 30 year old male can get a 20 year term policy with a death benefit of $1,000,000 from Banner Life for just $422.50 a year. This is approximately $35 a month and approximately $1.15 a day. That is less than a Caffè Latte per day.

Another option for a healthy 30 year old male is a 20 year term policy with a death benefit of $1,000,000 from Principal National Life Insurance Company for $455.00 a year. This is approximately $38 a month.

Term Insurance Rates Analysis:

The quotes above are both competitively priced. Both of the companies have A+ financial ratings from A.M. Best ratings agency. In purchasing a life insurance policy, pricing and financial strength are both factors to consider. You will want to buy a policy from a company that is most certainly going to be around for many years to come. In this scenario, the Banner Life policy is slightly less expensive. However, Principal has an accelerated underwriting program that allows the possibility of waiving the paramedical exam, which is almost always an underwriting requirement. For this reason, the 30 year old may consider the Principal policy even though it is slightly more expensive. This example demonstrates the importance of having a broker that is familiar with the insurance carriers in the industry and their underwriting guidelines.

A healthy 30 year old female can get a 20 year term policy with a death benefit of $1,000,000 from Banner Life for $347.36 per year. This is roughly $29 a month.

Another option for a 30 year old female is a 20 year term policy with a death benefit of $1,000,000 from Transamerica Life Insurance Co. for $350 per year. This is roughly $29 a month as well.

Term Insurance Rates Analysis:

The above quotes are both competitively priced and from companies that have high financial ratings. As you can see, these quotes are less than the quotes for the 30 year old male. This is because women have a greater life expectancy than men.

Term Insurance Rates for a 40 Year Old

A healthy 40 year old male can get a 20 year term policy with a death benefit of $1,000,000 from John Hancock for $643.00 a year.

Another option for a healthy 40 year old male is a 20 year term policy with a death benefit of $1,000,000 from MetLife for $649.00 a year.

A healthy 40 year old female can get a 20 year term policy with a death benefit of $1,000,000 from MetLife for $519.00 a year.

Another option for a healthy 40 year old female is a 20 year term policy with a death benefit of $1,000,000 from Banner Life for $549.98 a year.

Term Insurance Rates Analysis:

It is important to note that the quotes above are from companies with A+ financial ratings from A.M. Best ratings agency. Also, notice that MetLife is the least expensive option for the 40 year old female but not the least expensive option for the 40 year old male. Sometimes if a married couple are both seeking life insurance, they might purchase from different companies in order to maximize savings. Insurance carrier prices all vary based on age, gender, health, etc. An insurance carrier might be priced the best for a certain age group and gender and have relatively higher prices for another age group and gender. This is yet another reason that it is important to go to a broker when looking for term life insurance. Brokers can compare prices from the various insurance carriers and find the best pricing. Also, some insurance carriers have better pricing for whole life insurance and much worse pricing for term insurance. So again, there is an advantage to going to a broker, as it is important to compare prices to get the best rate.

Term Insurance Rates for a 50 Year Old

A healthy 50 year old male can get a 20 year term policy with a death benefit of $1,000,000 from Lincoln National Life Insurance Company for $1,688 per year.

Another option for a healthy 50 year old male is a 20 year term policy with a death benefit of $1,000,000 from John Hancock for $1,710 per year.

A healthy 50 year old female can get a 20 year term policy with a death benefit of $1,000,000 from Lincoln National Life Insurance Company for $1,244 per year.

Another option for a healthy 50 year old female is a 20 year term policy with a death benefit of $1,000,000 from Banner Life $1,249.99 per year.

Term Insurance Rates Analysis:

The above quotes are from companies with A+ financial ratings from A.M. Best ratings agency. Notice that for both a 50 year old male and 50 year old female, Lincoln National Life Insurance Company had the best pricing. However, in the 40 and 30 year old age groups, Lincoln National Life Insurance Company was not priced that low. No insurance carrier has the best term insurance rates across the board in every age group, health class, gender, etc. For this reason it is important to go to a broker to get price comparisons to find the product that is right for you.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

The post Term Insurance Rates appeared first on Secure Term Insurance.

1. Getting a Quote

As an example, Greg is a married 29 year old with a newborn child. He is interested in getting a term life insurance policy to protect his family in the event of his death. Greg can go directly to an insurance company and will receive a quote from just that company. Or he can go to an insurance broker and receive quotes from multiple companies so as to compare them. For this reason it is advisable to go to an insurance broker when shopping for term life insurance. Term life insurance quotes are based on age, health, term length desired, and death benefit amount desired.

2. Choosing a Term Length

Greg has a wife, a newborn child, and also a 30 year mortgage. In choosing a term length, he would like a term policy that lasts for the duration of his mortgage. He also hopes to one day send his child to college and potentially graduate school, so he wants the policy to last at least until his child is an adult. Therefore, a 30 year term policy seems like a good term length. If Greg dies at some point within the next 30 years the death benefit will go to the beneficiary of his choice, which in this case is his wife Kimberly.

3. Choosing a Death Benefit Amount

Greg is the main breadwinner of his family. He currently makes $100,000 a year. After assessing his financial situation including his income amount, outstanding debt, junior’s educational costs, and potential final expenses, he decides that he should have a policy with at least $1,000,000 of death benefit. Here is a needs assessment test to take if you are considering term life insurance. Greg’s insurance broker presents him quotes with 30 year term lengths with a death benefit of $1,000,000. The best quote comes in at $700 per year, assuming that Greg is in good health. Keep in mind that the pricing and the financial stability of the insurance company are both important factors to consider when shopping for term life insurance.

4. Underwriting Process

Greg decides to pursue the policy at which point the broker sets him up with a paramedical exam. The paramedical exam can be taken at his home, his work, or wherever he chooses. It includes a blood test, and a urine test. The results are sent to the insurance company. The insurance company may also request doctor records.

5. Policy Approval & Delivery

Once Greg is approved the policy is issued and the broker delivers it to him in exchange for the first premium amount, which in this case is $700. Keep in mind, you can opt to pay the premiums monthly if you would like.

6. How Does Term Life Insurance Work?

Once the check is received, the coverage is bound. Greg’s premiums are level at $700 per year for 30 years. As long as he pays the premium every year his $1,000,000 of death benefit is in force. If he dies within the 30 year period, the $1,000,000 will go to his beneficiary. If he does not die within the 30 year term the policy ends after year 30. At that point, if he wants to get a new policy he will need to reapply and go through underwriting again.

7. Know Your Rights

Many term policies can be converted to whole life policies within a certain amount of time with no additional underwriting required. You can change the beneficiaries of your term life insurance policy at any time. You can also drop your term life insurance policy at any time. For instance, if you buy a 30 year term policy you are not required to keep the policy for the entire 30 year term. There is no penalty for dropping a policy. Once you discontinue paying premiums the policy terminates and there is no death benefit coverage. However, if you do wish to keep the policy for the entire 30 year period, the premium amount is level and will never increase during the entire term length. You can add another policy at any time. As your financial needs change you can buy another term life insurance policy. It is a good idea to review your coverage to maintain the proper amount of life insurance.

8. Term Insurance is Relatively Inexpensive

It is very important for young families that have not been able to accumulate a lot of savings to buy term insurance.  Often, a term life insurance policy costs less than it costs to buy a cup of coffee per day. Proceeds from the policy create an estate for the benefit of the surviving spouse and children.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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For example: A 35 year old female in excellent health can purchase a $1,000,000 death benefit for a term length of 20 years for $380 per year.  That is $1.04 per day, which is quite a bit less than the cost of a morning latte.  A 30 year term policy can be purchased for as low as $680 per year, which is $1.86 per day!

A 35 year old male in excellent health can purchase a $1,000,000 death benefit for a term length of 20 years for $442 per year.  That is only $1.21 per day.  A 30 year term policy can be purchased for as low as $815 per year, which is $2.23 per day!

These quotes are from an insurance carrier that has an A+ rating from A.M. Best rating agency.

Term Life Insurance Cost (continued):

Term Life insurance quotes are based on your age, health, death benefit amount desired, and the term length desired. If you are a smoker you may still qualify for term life insurance. Most all term life insurance policies have a level premium amount. So the premium does not change from year to year. To find out how much term life insurance you need, here is a simple checklist to reference. You can also drop your term life insurance policy at any time. For instance, if you buy a 30 year term policy you are not required to keep the policy for the entire 30 year term. There is no penalty for dropping a policy. Once you discontinue paying premiums the policy terminates and there is no death benefit coverage. However, if you do wish to keep the policy for the entire 30 year period, the premium amount is level and will never increase during the entire term length. You can add another policy at any time. As your financial needs change you can buy another term life insurance policy. It is a good idea to review your coverage to maintain the proper amount life insurance.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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Knowing the difference between the two is a key to helping you get an overall perspective on the insurance industry and also will help when it comes time for you to buy insurance.

What is a Life Insurance Agent?

‘Life Insurance Agent’ is often used as an umbrella term to describe a person who sells insurance. Although used loosely and for simplicity when describing those who sell insurance, ‘insurance agent’ has a specific and important implication.

Technically, a life insurance agent refers to a person who sells insurance for only one insurance company. For instance, a life insurance agent with MetLife only sells MetLife insurance products… a life insurance agent with Prudential only sells Prudential insurance products…etc. This is why true insurance agents are often described as ‘captive agents’. They are captive in the sense that they only sell insurance products from their respective insurance companies.

What is an Insurance Broker?

Alternatively, a life insurance broker, also known as an independent agent, is not captive to selling insurance from just one company. A life insurance broker can sell insurance products from any insurance company and can provide a potential client with price comparisons.

The Myth of Buying Insurance Directly

It is important to note that when you purchase insurance it is mandated by law that a licensed insurance agent or a broker be involved in the transaction. There is no such thing as buying insurance directly from an insurance company so as to avoid paying a commission to an agent or a broker. Commissions are already built-in to the costs of all insurance policies. So choosing to purchase insurance through a life insurance agent or through a life insurance broker will not change the cost you pay for any policy. Keep in mind that if you are being charged a fee to get quotes then there is something wrong.

Why do some insurance salespersons become agents and others become brokers?

People entering the insurance sales profession often become agents first. Agents often receive sales training, an office space, sales incentive, and employee benefits from working with just one company. Those salespersons who become brokers typically have been in the insurance business for an extended period of time. Brokers rely solely on commissions to sustain themselves. They forego the benefits of being contracted with one company, but get the added benefit of being able to sell from multiple insurance companies.

Life Insurance Rate Comparison

It is important to get the most quality information you can when shopping and purchasing insurance. Comparing prices and getting a sense of the overall marketplace before you contact an agent or a broker is easy and beneficial.

At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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Many people do not realize that level term life insurance is an affordable way to protect your loved ones. It is easy to understand and allows you the flexibility of choosing the term of coverage and the amount of death benefit. Also, the premiums you pay are level for the entire term selected.

For example: A healthy male age 35 can purchase a 20 year term policy with a $500,000 death benefit from an A+ rated company for $255 annually, which is about 70 cents a day! The proceeds can be used to cover dependant care, educational expenses, mortgage payments, consumer debts, provide income replacement, etc.

Level Term Life Insurance Tips to go by:

1)  Level Term Life Insurance is relatively inexpensive.

Because Level Term Life Insurance is typically very affordable, there is very little reason to go completely uncovered.

2)  If you have dependants you need insurance.

Dependants include children that you support financially and in some cases older relatives (parents, grandparents, etc.) that you support financially. Also, if you have a spouse you should have insurance.

3)  You should buy level term life insurance when you are healthy.

Ideally you should buy insurance when you are healthy. This will ensure that you get a low rate for the term you choose. The sooner you buy insurance the better, because obtaining a policy is more difficult and more expensive as you get older.

4)  Buy insurance to meet your specific needs.

Add up your outstanding debt (mortgage amount remaining, car loans, credit card debt, etc.) educational expenses (the amount you would want to set aside for each of your children’s future educational expenses), income replacement amount (consider how much your surviving spouse would need in order to replace the income lost if you were to pass away), final expenses (consider an amount you would want to set aside for your funeral bills and also for potential end-of-life medical expenses).  Adding up the amounts from these categories will give you an adequate amount of insurance to buy. Keep in mind that the amount of insurance you would like is always up to you. If you feel you cannot afford to insure all 4 categories mentioned, insuring for just one, two, or three of the categories would be beneficial to your survivors. For more info see: How much insurance do I need?

5)  How do I choose a term length?

In choosing the length of the term it is advisable to buy a term policy to cover your dependants until they are able to provide for themselves. Another appropriate term length would be to buy a term policy that will give you coverage until your spouse reaches retirement age. Other ideas would be to choose a term length that coincides with the time you will be finished paying for your mortgage or finished paying for your child’s education.

6)  You can drop your term coverage at any time!

Let’s say that you qualify for and obtain a policy with a 20 year term and you are paying premiums monthly. In order to keep the coverage and maintain the same premium cost per month then you must keep up with the monthly payments. However, if for any reason you wish to drop your coverage just stop paying the premiums and there is no penalty. If you were paying premiums annually and midway through the year you wanted to stop your coverage the insurance company will reimburse you for the months that you already paid coverage for. If you are dropping your current coverage to try and go with a less expensive company, do not drop your policy until you have qualified for the new insurance with a better rate. Once you drop an existing policy you have with one company, you will have to go through underwriting again to get that same policy back. And, because you will be slightly older in age, the same amount of coverage will cost more in premiums.

7)  You can buy several policies.

Let’s say you are 35 years old and currently have a 30 year term policy to provide replacement income to your spouse in the event that you die before your planned retirement age of 65. Also, let’s say you have a child that is currently 15 and you plan to pay for your child’s college education in the future. Although you already have a 30 year policy, you can purchase a 10 year policy to meet this specific need for your child’s education. So remember that although you may already have life insurance, it is beneficial to review your coverages because your needs may change through the years.

8)  You can compare level term life insurance rates easily!

With the availability of the internet, comparing quotes can be done quickly. It is beneficial to compare rates because the same amount of coverage can be different in price by as much as 50% from one company to another. The Cheapest quote is not always best. The cheapest term policies often have stringent underwriting standards. Many companies advertise the lowest rates; however the caveat is that it is difficult to qualify for such rates. For a quick comparison of term life insurance quotes go to SecureTermInsurance.com

9)  You cannot buy life insurance without going through an agent or a broker.

Buying insurance through a broker and buying insurance through an agent are the same cost. It is important to note that when you purchase insurance it is mandated by law that a licensed agent or a broker be involved in the transaction.  There is no such thing as buying insurance directly from an insurance company so as to avoid paying a commission to an agent or a broker. Commissions are already built-in to the costs of all insurance policies. So choosing to purchase insurance through an agent or through a broker will not change the cost you pay for any policy. Keep in mind that if you are being charged a fee to get quotes then there is something wrong.

10)  Insurance Agent vs Insurance Broker

Insurance agent is often used as an umbrella term to describe a person who sells insurance. Technically, being an agent implies that the salesperson only sells insurance with one company. Agents cannot offer price comparisons from different insurance companies. Insurance Brokers are not captive to any one company. They can shop the entire marketplace to find the best product at the best price.

Looking for Level Term Life Insurance quotes? Get the coverage you need today. At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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1)  Outstanding debt:

Consider the total amount you owe on your home, the amount you owe in student loans, credit card debt, car loans, etc.

2)  Educational expenses:

Consider how much you would want to set aside for each of your children’s future educational expenses

3)  Income replacement:

Consider the amount your surviving spouse would need to replace the income lost if you were to die.

4)  Final expenses:

Consider an amount for your funeral bills, potential hospital or doctor bills, legal bills, taxes, etc.

Add up the totals amounts from each category (Outstanding Debt, Educational Expenses, Income Replacement, Final Expenses) to derive at an accurate amount of insurance for your personal needs.

Here is an example:

John (age 35) and Susan (age 34) are husband and wife with two children.

Outstanding Debt:

They have a mortgage of $300,000 and other outstanding debt of $50,000. ($300,000+$50,000=$350,000 total)

Educational Expenses:

They have decided that they would like to have $100,000 set aside for each child’s future education ($100,000+$100,000=$200,000 total).

John’s Income Replacement Amount:

John has an annual income of $60,000 *after taxes*. Assuming retirement age at 65, John has 30 working years remaining. Assuming John’s income remains the same, John is scheduled to make ($60,000 * 30 years) or $1,800,000 over the 30 year period.

Susan’s Income Replacement Amount:

Susan makes $65,000 a year *after taxes*. Assuming retirement age at 65, Susan has 31 working years remaining. Assuming Susan’s income remains the same, Susan is scheduled to make ($65,000 * 31) or $2,015,000 over the 31 year period.

Final Expenses:

John and Susan each would like a benefit of $20,000 in order to pay for funeral bills, potential hospital or doctor bills, legal bills, taxes, etc.

Adding up the totals from each category derives an adequate amount of insurance for John and Susan to purchase.

John will buy a policy with a death benefit of ($350,000 + $200,000 + $1,800,000 + $20,000) = $2,370,000 and name Susan as the primary beneficiary. Also, John will name the children as the secondary beneficiaries so that if Susan is no longer alive the children will obtain the benefit.

Susan will buy a policy with a death benefit of ($350,000 + $200,000 + $2,015,000 + $20,000) = $2,585,000 and name John as the primary beneficiary. Also, Susan will name the children as the secondary beneficiaries so that if John is no longer alive the children will obtain the benefit.

Keep in mind that the amount of insurance that you want to purchase is always up to you. Furthermore, replacing one’s entire income in the event of death is not always necessary or possible.  However, to go completely without life insurance when you have loved one’s that depend on you is a mistake. Life Insurance is a vital part of a good financial plan and even a relatively small amount can be beneficial in the event of the unexpected.

At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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Whole Life Insurance

1.  Provides death benefit coverage for life.

As long as you pay your premiums, your whole life insurance policy remains in force. The whole life insurance policy provides coverage for your entire lifetime. This is different from term life insurance, which only provides a death benefit for a set period of time. 10 years, 20 years, and 30 years are common term lengths.

2.  Builds cash value

In a whole life insurance policy, a portion of the premium that is paid accumulates into a cash value account. The cash value account accumulates on a tax deferred basis and accumulates at a competitive interest rate. A term life insurance policy does not accumulate any cash value and only provides a death benefit for the set term.

3.  Can provide supplemental retirement income

The money that has accumulated in the cash value account from your whole life insurance policy can be borrowed out of the policy and can be used to supplement your retirement income. You do not have to wait until you retire to borrow money out of the policy. You can take the money out any time you wish.

Term Insurance

1.  Provides coverage for a set term length

Common term length options are 10 year, 20 year, and 30 year terms. The premium amount remains level throughout the term period. Once the term is over the life insurance coverage terminates and you must reenter the market if you want coverage again.

Keep in mind that the older you are when you apply for coverage, the more expensive premiums will be. Some term policies have a term conversion option which will allow all or part of the death benefit amount to be converted into a whole life policy without proving insurability. This allows the insured person to continue coverage without having to reapply for life insurance when the term policy expires.

2.  Provides only a death benefit

There is no cash value build up in a term life insurance policy. A term policy provides a death benefit only. A whole life insurance policy builds cash value and provides a death benefit as well.

3.  Cheapest option

The premiums on a term life insurance policy are less expensive than the premiums on a whole life insurance policy. Term life insurance is especially helpful for young families that do not yet have significant savings. The younger you are and the healthier you are when applying for term insurance coverage, the less expensive the premiums will be. For some people, term insurance premiums can cost less than purchasing a cup of coffee every day.

4.  Common term lengths are 10, 15, 20, & 30 year terms

When choosing a term length. Here are some questions to consider. How many more years until you reach your planned retirement age? How many years until your child becomes an adult? How many years are left on your mortgage?

Now that you understand the difference between Term Life Insurance vs Whole Life Insurance, you will be able to purchase a life insurance policy that will provide the financial security that you need for your family.

Whole Life Insurance vs  Term Life Insurance

Get the coverage you need today. At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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