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What Is Term Life Insurance? |
Term life insurance provides insurance protection for a pre-selected period of time or "term". Term life insurance has no "accumulation" or "cash" value. The initial premium for term insurance can be the least expensive form of life insurance in TN. |
What Are The "Term Periods" Of Term Life Insurance? |
Term life insurance is usually written for a period of time, such as 1, 5, 10, 15, 20 or 30 years. If the insured dies within the pre-selected "term" period and the policy is in force, a death benefit will be paid to the beneficiary(s) under the terms of the particular insurance policy. If the insured is still living at the end of the "term" period, and the term life insurance policy has not been renewed, all insurance coverage under the insurance policy will cease. |
Will The Premium For A Term Life Insurance Policy Ever Change? |
If you purchase a "guaranteed level term" insurance policy, the premium will remain the same for the term period-10, 20, or 30 years. However, if your policy provides for renewal, the premium for the second "term" period will increase, sometimes significantly.
For Example: |
Male-Age 35 purchases a 20-Year Level Term Life Insurance Policy which is issued at a "Preferred Plus-Non-Smoker" rate:
Premium for 20 years - $ 239 per year**
Premium starting year 21 - $ 3,045 per year**
This is why we say that term life insurance may be more economical - initially.
**This example is based on a 20 year guaranteed level term life insurance policy underwritten by Metropolitan Life Insurance Company. Premiums are subject to change. |
Things You Should Consider Before Buying Term Life Insurance In TN |
- Term life insurance provides low cost insurance protection at first, but premiums generally increase with age and may become unaffordable later in life.
- There is no "cash value" element, so you miss the tax-deferred growth of the cash value of permanent life insurance policies.
- At the expiration of the "term" period, unless the policy is renewed, the life insurance coverage will cease and the policy has no further value.
- Term life insurance is designed for a temporary life insurance need, like retiring a 30 year mortgage.
- If your life insurance need is large, but you have a limited budget, term life insurance may be a good place to start your life insurance program.
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| *All answers to Frequently Asked Questions and all basic life insurance information contained in this web site are for informational purposes only. You should first consult with your own professional insurance advisor prior to making a decision regarding the suitability of topics discussed which may or may not be applicable to your particular needs. |
TN Insurance Topics of Interest |
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AUTO-HOME-LIFE-HEALTH-BUSINESS INSURANCE
IN TN CITIES |
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