1. TERM LIFE INSURANCE 101

Term life insurance, also known as pure life insurance, is a type of life insurance that guarantees payment of a stated death benefit if the covered person dies during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the policy to terminate.

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2. KEY BENEFITS

• Term life insurance guarantees payment of a stated death benefit to the insured's beneficiaries if the insured person dies during a specified term.

• These policies have no value other than the guaranteed death benefit and feature no savings component as found in a whole life insurance product. 

• Term life premiums are based on a person’s age, health, and life expectancy.

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3. HOW TERM LIFE WORKS

• When you buy a term life insurance policy, the insurance company determines the premiums based on the value of the policy (the payout amount) as well as your age, gender, and health. In some cases, a medical exam may be required. The insurance company may also inquire about your driving record, current medications, smoking status, occupation, hobbies, and family history.

• If you die during the term of the policy, the insurer will pay the face value of the policy to your beneficiaries. This cash benefit—which is, in most cases, not taxable—may be used by beneficiaries to settle your healthcare and funeral costs, consumer debt, or mortgage debt among other things. However, if the policy expires before your death, there is no payout. You may be able to renew a term policy at its expiration, but the premiums will be recalculated for your age at the time of renewal. Term life policies have no value other than the guaranteed death benefit. There is no savings component as found in a whole life insurance product.

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4. SPEAK TO A LICENSED INSURANCE AGENT

You can expect same day correspondence and a quote within a day. The seasoned staff at ABC Health Consultants are relationship focused and here to guide you through what can be an overwhelming process without a helping hand. Fill out our simple form and we’ll have you covered in no time. To speak with a Licensed Agent, you can schedule a call by clicking on the link to the right "Speak to an Agent" - To see a complete list of all the carriers we work with - click here.