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Term Life Insurance

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Term life insurance definition

It is a type of life insurance policy that is simple and easy to process and budget. Hence, it can offer very flexible terms, coverage and most insurance providers can give you an option for no medical examination.

 When it comes to term life insurance, it is essential to understand that it is just a temporary policy. Therefore, it cannot offer lifetime security for the insured like whole life insurance. Instead of lifetime security, you can choose from a specified length for your policy, such as 10, 20, or 30 years. Beneficiaries of the insured would get the benefit if he or she died within the period of the policy.

Unfortunately, insureds who outlive their terms then you will not get anything from the insurance provider. However, there is an option to apply for a return of premium policy for an additional cost. This limitation is the reason why term life is good as a safety net for unexpected life events. Also, it is why it is one of the most affordable options for life insurance.

Term life insurance how does it work?

What is term life insurance and how does it work? Term life insurance is very easy to understand and has a simple application process. First, choose your term life insurance length and then decide on the term life insurance prices you can afford. In case the insured dies during the chosen period of the policy, then beneficiaries will get the death benefit. Also, the cost of the monthly premium will not increase during the term.

Furthermore, the policy will not be canceled if your health suffers, like developing a serve illness. However, the insurance provider may choose to cancel the policy if you miss several payments.

Term life insurance coverage

To calculate the term life insurance coverage amount, you may calculate it by multiplying your annual income x 15. For instance, if you earn $50,000 every year, you will get $750,000 of coverage. Though the $750,000 policy sounds great, make sure that you can afford to pay for it until the end of the policy. If you have any doubt, it is good to go down to the $50,000 policy. It is better to get a lower policy than to regret it later. In short, only get a policy that you can afford to pay until the end.

Life insurance policy length

The term is the period of how long the agreement of the policy will last. Mostly, insurance providers offer 5, 10, 15, 20, 25, and 30-year insurance coverage. Hence, you may find some that can even offer up to 40 years. Also, it’s up to you if you want to cancel the policy in case you no longer need it.

Experts believe that getting a shorter term is not a wise decision. The safest period is 20 years and above. Getting a ten-year term policy can save you a lot, and renew it after the policy ends.

Medical Exam for life insurance

Term life insurance with a medical examination offers the most affordable coverage. If you take this type of policy, you will be scheduled for a medical exam from a licensed physician. The applicant may decide whether they want to do the examination at home or inside a clinic.

Medical examination procedures are not scary. A doctor will take your vital signs, oxygen level, and blood pressure. Aside from that, they will do blood extraction for a deeper review of your health condition. In case you are afraid of needles or blood, you may choose not to undergo a medical examination. In that case, you can go for a no medical exam term life insurance.

What happens if you stop paying life insurance premiums

The worst thing that can happen is missing payments. Therefore, it is good to go for $50,000 coverage if you are confident about it than $750,000 if you struggle to pay for it. Some insurance providers may have lenient guidelines on miss payments, but most insurers will immediately cancel your policy.

Term life insurance quotes

Coach B. Life Insurance, the first multi-carrier, direct to consumer insurance marketplace! Now, consumers can get an instant quote and apply online at the same time, on the same platform without ever needing to speak with an agent, except for specific questions.

 How to get term life insurance quotes

  1. Provide your necessary information, like age, height, weight, gender, and state.
  2. Find and compare rates from several companies.
  3. Lastly, submit an application through the website.

It is possible to finish the entire process online, depending on the insurer. In case you need help our agents are here to help assist you at any time. Agents will answer all your questions and walk you through the entire application process.

Term life insurance quotes over the phone

If you are not comfortable in an online setting, then we can do a phone call. Licensed and expert agents are always available to answer your call. You can dial 1-800-342-1537, and you will be provided with everything you need to know about affordable rates and coverage. In case you are happy with the rates, we will make the entire application process easy for you.

Let a Coach B insurance agent shop for you

Are you busy with work and other obligations? We’ll do all the heavy lifting for you. All we ask is for you to send a request in so our agents can shop for you. Help us by providing some details, and we will email term rates according to your needs and budget. Also, be honest about your health condition. There is nothing to worry about. Coach B can give you alternative options in case term life doesn’t suit you.

What does term life insurance cost

Maybe you are not yet aware, but term life insurance is the cheapest type of life insurance. According to some studies, 50% of applicants overestimate the cost of a term life policy. Also, some other types of policies may cost 5 to 10 times higher than term life. So, if you aim for the most affordable one, then term life is for you.

Term life insurance rates by age

The following are sample rates based on a 20-year term life policy.

AGE & GENDER

$50,000

$250,000

$500,000

$1,000,000

25 – Male

$8.61

$12.35

$19.11

$31.16

25 – Female

$7.83

$10.89

$15.72

$23.47

35 – Male

$9.48

$13.38

$21.28

$35.06

35 – Female

$8.66

$12.12

$17.87

$29.91

45 – Male

$15.27

$26.31

$46.27

$88.85

45 – Female

$12.83

$21.22

$37.20

$69.10

55 – Male

$31.97

$64.81

$119.13

$227.85

55 – Female

$24.71

$48.87

$88.73

$166.17

65 – Male

$81.61

$201.35

$387.35

$748.10

65 – Female

$63.12

$142.47

$264.22

$508.99

The above rates are sample prices based on non-smokers living in Kentucky with an excellent health rating. You may get a quote now to estimate yours.

Affordable term life insurance

The affordability of term life insurance vs whole life is often ten times less.

Why term life insurance is affordable

  • The life expectancy of people is increasing.
  • Shopping for quotes and comparing prices is easier, especially with an independent insurance agency like Coach B. Insurance. As a result, insurers will offer very competitive pricing.
  • Some insureds end up missing payments that lead to canceled policies.
  • There is very minimal cost in underwriting and managing term policies.
  • Term life does not pay for the death benefit in case an insured outlives the term policy.

However, the older you get, the higher premium you will need to pay. It is true for all types of insurance policies. Hence, older people are more prone to different health issues that can increase rates for coverage as well. Therefore, the longer you decide to get life insurance, the fewer chances of getting an affordable policy.

On the other hand, getting a life insurance policy while your young and healthy is good idea. You will be able to shop for the lowest prices and get the best coverage for your money.

However, if you are suffering from one or more health issues, like diabetes, heart ailments, or cancer, rates may vary according to insurers. The only similarity is the fact all of them may offer higher rates. With Coach B, having health issues is not a problem as they will help you find the best provider and policy that will suit your needs and budget.

Furthermore, Coach B. insurance agents have years of experience in the underwriting process. They know the rules. Also, they have worked with various insurance providers, so they know who is more lenient with health issues. It makes it easier for us to secure the lowest rates possible for you.

Can the life insurance cost per month change

A change in monthly premium is possible depending on the type of term insurance. If you want a policy with rates that do not go up, then we suggest guaranteed level term life coverage. It is the most in-demand type of term life as the premium stays the same within the term guaranteed.

Is term life insurance right for you

The following are scenarios to know if term life is the best choice for you.

  • Some people need insurance coverage for a definite period. It means that you can apply for term life during the time of your life when you need it the most. For instance, if you start your family life, a 20-year term is great to offer your spouse and children coverage. 
  • People with budget constrain. It is the most affordable type and offers great coverage for what its cost.
  • People who are at the age of 50 above and still in great health condition. Policies premium indeed gets higher as people age. However, if you think that you are healthy enough, then you will surely get affordable rates.

Single individuals may not think of getting coverage, but if you are just married or planning to start a family soon, then purchasing one is a wise decision. Term life is the least expensive option for starting a family. It is enough to secure your family in case something bad happens to you. Also, it may even cover the educational expenses of your children. 

Moreover, a cheap term life insurance policy can help pay for any outstanding debt you in case you die early on. Therefore, your spouse and children do not have to carry the burden of paying for your debts.

Do you need a conversion option for your term life insurance

At Coach B. insurance we think so. There are different reasons why you would want to convert your term life.

  • One is it is very expensive to renew a term life policy after it expires. 
  • Second is you may qualify to apply for permanent life insurance, especially if you reach a certain age, and have developed a health condition. 

For example, a 45-year-old man applied for a 20 years term life policy and ten years conversion clause. After nine years, he developed a health problem, like diabetes or heart illness. Therefore, the ten-year conversion clause will allow him to convert his term life policy to a permanent one before it expires without the need to undergo a medical examination. As a result, he can secure his family for life and get it at a lower rate than if he will start with a new policy. 

If the term is without a conversion clause, he will face expiration with a costly premium rate. Also, there is a possibility of denial because of his current health status. The worse that can happen is if he outlives the term and nit able to apply for a new one, then he will not get anything from the insurer.

Even if you stay healthy, you will surely age. It is a significant factor for getting a higher premium rate if you choose to get a new policy. Therefore, it makes sense to consider a conversion rider. Strangely, according to LIMRA, there is only 1 to 2 percent of policyholders take advantage of the conversion option.

Most insurers allow the conversion of the whole policy or just part of it without the need to experience the underwriting process and medical examination. However, the conversion should be done within a specific period right before reaching a certain age. It is essential to convert the policy before the term ends, or else you will not convert it after. When purchasing a term life policy, always ask for a conversion rider.

Conversion riders vary according to insurance providers. Some may offer great features, while others have none at all. Remember that you need to pay a little higher premium if you include it in your policy. The additional payment is all worth it after knowing its benefits. Another important thing to remember is that as you convert the policy, the first year of payment might be reduced.

We are dealing with many insurance providers, so our experienced agent will give you good advice whether you need a rider or other types of policy suits you best.

Types of Term Life Insurance

Level term life insurance

It is a type of term life that can offer the same premium within the policy term. The policy is renewable at the end, but the monthly premium will start to increase afterward.

Annual renewable term life insurance

It is renewable term coverage, as the name implies. The policy will remain even after the insured has failed to apply for a new policy. The same with other terms, the monthly premium is according to the insured’s age and health status by the time of its renewal.

Return of premium term life insurance

Return of premium term life  as it will payback for a premium paid by the insured even he or she outlives the term. However, premiums for this type are three times higher compared to other types of term life.

Living benefits term life insurance

It is a rider or additional feature to the policy. The best thing about the living benefits it gives the insured the ability to access the death benefit if the policyholder has been diagnosed with a chronic illness. Therefore, it is used to pay for hospital bills, medicines, and other healthcare needs as long the insured is alive.

Decreasing term life insurance

It is a type of term wherein the benefit decreases over time. The decrease in benefits happens every other year or several months at a time. The benefits steadily decrease during the term. The decrease generally occurs at annual intervals or a few months at a time.

Guaranteed level term life insurance

This type will give you a steady premium at the course of the policy.

Non-guaranteed level term life insurance

Within this policy, you will only get steady premium and coverage at a specific part of the time. Afterward, premiums and coverage may change anytime. Therefore, it is essential to carefully read your policy term and loom for such provision within the contract.

Group term life insurance

It is common for employers and other large institutions. Hence, it is being offered to members of the company. The group is the policyholder rather than the individual.

What is the best type of term life insurance

As an expert in this field, we highly recommend the guaranteed level for 20 years term. It is the best option because it can provide security for your premium and death benefit to stay steadily during the entire 20 years. However, you must pay the premiums on time.

Best term life insurance companies

COMPANY

S&P

A.M. BEST

BBB

AIG

AAA

A+

C+

Mutual of Omaha

A+

A+

A+

Savings Bank Life Insurance (SBLI)

AA-

A+

A+

Assurity

AA-

A+

A-

Foresters

AA

A+

A+

Fidelity Life

AA

A+

A-

Pacific Life

AA-

A+

A-

Prudential

AA-

A+

Not rated

John Hancock

AA-

A+

A-

Metlife

AA

A+

A+

Typical term life insurance questions

What will happen right after the end of the term?

Term life will surely end, but you may be offered for term extension before it ends. It depends on the insurance providers. Also, the monthly premium will go up after the extension. Another option is other types of policy that is according to your age and current health status. That is why we highly recommend getting a term life policy with a conversion clause to a permanent policy.

How is the payout for term life?

The general rule is to first apply for a claim by the beneficiary. Also, it is essential to show the death certificate of the insured to get the payout. Beneficiaries can choose a lump sum or annuity payment.

How much premium to spend based on monthly income?

It is important to note that only 2 to 3 percent of the annual income is for coverage. Each individual has a different financial situation, so that it may vary. The only thing you need to keep in mind is that the policy will end if you miss payments. So, it is important to decide on a comfortable amount you can take from your monthly salary.

Is term life considered as renting or owing?

Experts disagree with the idea of it as “renting vs. owning.” For instance, for a house, the cost of buying vs. renting is the same, so it is wise to buy than to rent. On the other hand, life insurance, “renting” as term policy compared to permanent as “buying,” is ten times lesser.

Always Look and Read Reviews

Nowadays, the online life insurance market is also filled with fraud, so it is good to equip yourself with the right information. Therefore, it is good to look for life insurance comany reviews as well as possible complaints about each insurer. Also, consider an insurance provider with years of experience and a good reputation. You can get it from their past and current policyholders. Also, you may find reliable information from Google my business as well. Coach B. insurance is here to guide you and lead you to the best insurance providers in the market.