Term Life Insurance
Plans in Monticello, Georgia

There are different Term Life Insurance policies from which you can choose. Let’s review a few of the more popular ones.

Level-Term Policy (or Level-Premium Policy)

A Level-Term Policy covers a specified period, usually ranging from 10 to 30 years. In these policies, the death benefit and the premiums are fixed. These policies usually have a higher premium while the holder is a younger age because the insurance company has to account for an increased risk over the life of the policy.

Yearly Renewable Term Policy (YRT)

A Yearly Renewable Term Policy has no specified term in years. They can be renewed each year without the holder being required to prove insurability. However, the premiums rise from year-to-year as the holder ages. This policy is normally less popular since premiums can become unfeasibly expensive as the holder ages.

Decreasing Term Policy

Decreasing Term Policy death benefits decline yearly. The benefit is pre-determined and provided to the holder in a schedule. The policy holder still pays a fixed premium throughout the policy, even though the benefit payout declines. Policy Holders tend to use these in concert with a mortgage, so that, as their home equity rises, their life insurance benefit lowers.

A Term policy can be renewed when it expires, but premiums are always recalculated based on age and other factors at the time of renewal.

If a person dies during their policy period, their beneficiaries will be paid the policy’s face value. Usually this payout is non-taxable and may be used for other purposes besides settling healthcare costs, funeral costs, and other debts. If the policy expires before the holder dies, there will be no payout. There is also no return of any payments when a Term Life Policy expires.

Term life insurance differs from other types of life insurance in several ways:

1. Coverage Duration: Term life insurance provides coverage for a specific period or term, such as 10, 20, or 30 years.  Other types of life insurance, like whole life or universal life insurance, offer coverage for the entire lifetime of the insured.

2. Premiums: Term life insurance generally has lower premiums compared to permanent life insurance policies.  Since term life insurance provides coverage for a specific term and does not accumulate cash value, the premiums are typically more affordable.

3. Cash Value: Term life insurance does not build cash value over time.  Permanent life insurance policies, such as whole life or universal life insurance, have a cash value component that grows over time and can be accessed by the policyholder.

4. Flexibility: Term life insurance offers flexibility in terms of coverage duration.  Policyholders can choose a term that aligns with their specific needs, such as covering a mortgage, raising children until they reach adulthood, or providing income replacement during working years.

5. Convertibility: Many term life insurance policies provide the option to convert to a permanent life insurance policy without undergoing additional medical underwriting.  This conversion feature allows policyholders to transition from temporary coverage to lifelong coverage if their needs change.

It is often possible to add riders or additional coverage to a term life insurance policy, depending on the insurance provider and the specific policy terms.  Riders are optional provisions that can enhance the coverage of your policy by adding extra benefits or customization options.  Some common riders that are available for term life insurance policies include:

1. Accidental Death Benefit Rider: Provides an additional death benefit if the insured’s death occurs as a result of an accident.

2. Critical Illness Rider: Offers a lump sum payment if the insured is diagnosed with a specified critical illness, such as cancer, heart attack, or stroke.

3. Disability Income Rider: Provides a regular income stream if the insured becomes totally disabled and unable to work due to injury or illness.

4. Waiver of Premium Rider: Waives premium payments if the insured becomes disabled and unable to work, ensuring that the policy remains in force.

5. Child Term Rider: Provides a small amount of coverage for the insured’s children, typically at a lower cost than purchasing a separate policy for each child.

6. Terminal Illness Rider: Allows the insured to receive a portion of the death benefit if diagnosed with a terminal illness, providing financial support during the final stages of life.