What is term life insurance?
Term life insurance is a type of life insurance policy that covers you for a period of time by paying your beneficiary a benefit amount if you die. You buy term life insurance, typically, for 10, 15, 20, 25 or 30 years. Term life insurance rates are locked in. Once you make your initial premium payment, the premium payment you pay will not change throughout the term of the policy. If you purchase term life insurance while you are younger it will be cheaper than waiting until you are older. Also, Term life insurance is cheaper than purchasing whole life or permanent life insurance. Whole life or permanent life insurance can cost as much as 5 to 15 times term life insurance.
Why do you need term life insurance? Why should I purchase term life insurance now?
There are several important reasons why you should purchase term life insurance:
- A more affordable way to leave money to your family or loved ones.
- You currently do not have any life insurance.
- You only have life insurance through your employer.
- Cost of term life insurance increases as you get older.
- Do not want to leave a financial burden on your family.
Term life insurance is a very affordable way to leave money to your family or loved ones. If you die during the term of the policy, the benefit amount is paid tax-free to your beneficiaries. Most people who are working either have a free, employer-paid life insurance of $50,000 or they have voluntary, or supplemental term life insurance with their company. The problem is that if you retire or terminate your employment, it is very expensive to transfer your term life insurance policy. At that time it will be much more expensive to get life insurance coverage since the cost of life insurance increases as you get older. You should buy term life insurance if you do not have funeral or burial insurance. By purchasing a term life insurance policy you can leave your family with a financial legacy instead of a financial burden. The proceeds from the life insurance can be used to cover the cost of the funeral and final expenses such as mortgage loans, medical bills, or outstanding debt.
When should I buy term life insurance?
You should buy term life insurance if you fall into the categories mentioned above. None of us can be certain when our time is up.
How does it work? Who gets the payout?
A term life insurance policy can be purchased through POM Insurance. You can call or email to get a no obligation quote, specific and detailed answers to your questions. Term life insurance is purchased through a broker or agent or a company-sponsored health plan. The payout is made to your beneficiary on file after a claim has been made by the beneficiary or attorney and processed by the insurance company.
Below are the steps to obtaining a term life insurance policy.
- Determine how much coverage you need. We can help you consider these options. Generally, you should take into consideration how much you can afford.
- Get quotes. You can call or email us to get quotes today.
- Ask questions.
- Complete the online application.
- Complete the medical exam, if necessary. For certain individuals, the insurance company will require a medical exam to make sure the policy holder is an appropriate customer from a health standpoint.
- Start paying your premium. Generally, the policy becomes in effect once your pay your first premium and, if you took a medical exam, the results from the exam have been determined.
Obtaining coverage is quick and easy. Call me at (800) 513-8050 to receive a no obligation consultation and quote.
We look forward to hearing from you.
We have answers to other frequently asked term life insurance questions on our Term Life Insurance FAQs page.