Term Life Insurance
Term Life Insurance Information
If you provide financial security for a spouse, children or other family members, you may want to consider obtaining a life insurance policy. Life insurance can help ensure your dependents are financially protected when you pass away.
What Is Term Life Insurance?
One type of life insurance is called term life insurance, which is only for a fixed period, commonly 10, 20 or 30 years. Short-term insurance will pay out only if the policyholder dies during the term. If they outlive the term and the coverage ends, their beneficiaries will not receive any money when they pass. When the policy reaches its term, the policyholder must reapply for a new policy if they want coverage to continue.
Term life insurance is typically recommended to those who want more affordable coverage and those who want life insurance to cover only a specific time.
How Does Term Life Insurance Work?
When you purchase a term life insurance policy, your insurance provider will determine the premium based on the payout amount and your age, gender and health. The policyholder will pay that monthly premium in exchange for coverage. If you die during the policy term, the insurer will pay the policy’s face value to your beneficiaries, which they can use for the following:
- Income replacement for dependents
- Funeral and burial costs
- Medical expenses
- Federal and state death taxes
- Charitable contributions
- Daily expenses
It’s important to remember that there will be no payout if the policy expires before your death. You may be able to renew your policy, but your insurer will likely recalculate the premiums.
How Do I Buy Term Life Insurance?
Contact P&C Insurance Services Inc.
if you are interested in obtaining a term life insurance policy. We can discuss your life insurance options and help you make the right choices for your specific situation.