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Understanding Term Life Insurance
Life insurance can be confusing, but we're going to give you some insight into the basics of Term Life Insurance. Here you'll find out how term life insurance works, who should consider term products and what we offer.
How Does Term Life Insurance Work?
Term life insurance works in much the same way as auto insurance--premiums are paid for a specific period of coverage. Term life coverage is typically purchased for a specific amount of time, such as 10, 20 or 30 years, or up to a certain age, depending on the policy. Term policies are generally more affordable than permanent policies because they do not provide Cash Value* and the death benefit is usually free of income tax.
Who Should Consider Term Life Insurance?
Term life insurance may be appropriate if you need:
- Maximum coverage with a minimal budget. Because term life insurance does not provide cash value and is normally used for a specific time frame, it tends to be less expensive.
- Coverage to help financially support your family. Term life insurance can be used to cover the time period of a specific debt. If you have a 30-year mortgage, for example, you might want a 30-Year Level Term policy.
- Additional coverage for a limited amount of time. If you already have a permanent life policy, you might find increasing the value of that policy to cover debts like a mortgage, student loans, business loans, etc. will increase your premium significantly. Instead, you might find it's more affordable to purchase a term life policy your family can use to pay those debts in the event of your death.
- Future insurability. Want the option to buy permanent life insurance later in life? Term life insurance may help. In most cases, term policies can be converted to a permanent life insurance policy without proof of good health.**
What Types of Term Life Insurance are Available?
EZ Term® Life Insurance
EZ Term® Life Insurance is a great option for younger people with limited budgets. This policy can help cover student loans, funeral costs, credit card debt, etc. It features:
- $50,000 of coverage until age 40
- Premiums that remain the same throughout the life of the policy
- The ability to convert to a permanent policy any time before age 40 without proof of good health**
Level Term Life Insurance
Level Term Life Insurance is a more affordable option for many young families with a mortgage, taxes, daily living expenses, credit card debt, and other types of expenses related to starting a family. It features:
- A Guaranteed Death Benefit of $100,000 or more as long as premiums are paid when they are due.
- Level term options of 10, 20 or 30 years
- The ability to convert to a permanent policy during the conversion period without proof of good health*
Shelter Express Term® Life Insurance
If you are between the ages of 18 and 60, in good health, don't have a dangerous job or dangerous hobbies, and want to purchase term life insurance without taking a physical exam, the Shelter Express Term® Life Insurance may be perfect for you. Some key features of this policy include:
- Coverage available in $50,000, $75,000 or $100,000 amounts
- Premiums remain the same for 30 years or to age 65, whichever comes first
- Guaranteed Death Benefit to age 95 as long as your premiums are paid when they are due.
Additional Considerations
Term life insurance is typically less expensive to purchase, although the older you are, the higher your premiums will likely be. In addition, the policy may not be renewable after a certain age.
If you are looking for a solution that protects your family for a certain period of time, consider term life insurance.
*If you are interested in something that does provide cash value, you may be interested in our permanent life insurance options.
**Depending on the policy, other guidelines may apply.
The product information contained on this website is informational only and not a statement of contract. All coverage options are subject to the provisions of the policy purchased and details of the policyholder's situation.
Shelter Life Insurance Company, 1817 West Broadway, Columbia, MO 65218