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Protection for Your Family for a Specific Period

Term life insurance provides protection for a specific period of time, or term. It is most often sold in -10,-15, -20 and -30 year terms. The premium stays the same throughout the term. If the insured person dies during this period, the beneficiaries receive the proceeds income tax-free. At the end of each term, the insured may renew the policy (generally at a higher cost) up to age 95.

Advantages and disadvantages of term life insurance:

  • Term life insurance can provide essential protection for your family. It is less expensive than other life insurance options.
  • Keep in mind that as your life changes (for example, marriage, birth of a child or a job promotion), so will your life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges including costs of insurance that vary based on the insured person's gender, health and age. There are additional charges for riders that customize a policy to fit your individual needs.
  • If you want to purchase another policy after your term ends, you may have to show evidence of good health to purchase continued protection. An annual renewable term policy may not require this, but your premiums may increase each year.
  • The downside of term life insurance is that it isn't a permanent life insurance solution. Once the term ends, the coverage ends or the premiums increase dramatically. And, the older you are, the more expensive it gets.
  • Fortunately, you can convert many term life insurance policies to a permanent insurance product such as whole life insurance, universal life insurance or variable universal life insurance.

Are there diff erent kinds of
term life insurance?

Annual Renewable Term

The death benefi t is a level amount. The policy is automatically renewed the next year without evidence of insurability. However, the premiums may increase each year with age..

Level Term

The death benefi t is a level amount. The policy is generally purchased for a period of 10, 20 or 30 years, and the premium will often remain level over the entire period. Premiums will generally be higher than the initial premium for an annual renewable term of the same face amount. But, the premium will remain the same in later years when the annual renewable term premium is still increasing.

Decreasing Term

Typically used to help pay the mortgage, decreasing term maintains a level premium over a specifi c number of years and the benefi t decreases every year until the selected term period expires. For example, you may purchase a $100,000, 30-year policy to help provide funds that may be used to pay the mortgage in the event of your death. The life insurance benefi t will decrease with your mortgage over time. After 30 years, your coverage will end.

Credit Insurance

You may receive off ers in the mail for mortgage insurance or credit insurance. They are really off ering you a type of term insurance — and at a hefty price. If your health is good, you may be able to purchase an individual term policy to provide this coverage at a fraction of the cost.

More information about Term Insurance coverage type.

Why do I need life insurance?

Life insurance is a way to provide cash to your family when you die. The money your benefi ciaries receive can be used to cover fi nal expenses, pay off debt and cover the mortgage or rent. It can provide a college fund, provide retirement money, create cash to pay estate taxes or simply provide a stream of income that will help your family maintain its present lifestyle. The death benefi t paid is generally income tax free. Business owners use insurance to help transfer the business to the next owner.

How much do I need?

  • Rule of Thumb — The amount you need is fi ve to seven times your annual gross income.
  • Expense Calculation — Determine expenses for burial, an emergency fund, personal debts, mortgage, college education fund and any income replacement; add these together to determine your insurance need.
  • Income Replacement — Determine how much of your annual income your family would require to maintain its current standard of living (average is 70%); purchase enough insurance so the proceeds, if invested at an after-tax rate of 8%, would generate this income.

Explore the today and let's get smarter about:

  • Changing Term insurance rates.
  • Shopping for Term insurance.
  • Insurance emergency.
  • Insurance Hacks

Get an online quote today to see what discount you might be eligible for Term insurance.


Getting A Term Insurance Quote

Quoting with FA is quick & easy answer a few simple question, give us some information about your history & we will give you an accurate quote to consider.

The Insurance Quote Process

  • 1.

    Fill information about you.

     

  • 2.

    Fill information about your Family.

     

  • 3.

    How much insurance

    We'll help you determine the amount of life insurance coverage you may need by calculating your expenses, debts and future financial needs..

  • 4.

    What will it cost?

    We'll provide an estimate for a Term or Whole Life insurance policy based on the amount of coverage you want, the length of time you want your policy to last, and your health and lifestyle.

  • Get a Quote

Advantage of FA Insurance Agent

Call FA insurance professional today. By having a better understanding of term life insurance, you can decide if it would be a valuable addition to your financial plans.

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  • But spend some time with us and you’ll quickly see a difference — family is at the heart of all we do.
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