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TERM LIFE INSURANCE

Affordable Protection for Your Loved Ones

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What Is a Term Life Insurance Policy?

Term life insurance is a type of life insurance that provides coverage for a specific period, or term. It is one of the simplest and most affordable types of life insurance and can help you protect your family's financial future if you pass away during the term. 

A young dad puts up a picture where his kids.

Why Choose Term Life Insurance?

Term life insurance is a cost-effective way to secure your family’s future. With an affordable and flexible coverage plan, this option provides financial protection for your loved ones for a specified term. It’s a perfect choice for those who:

  • Don’t want to pay higher premiums for whole life insurance
  • Want coverage for a specific period of time
  • Have temporary financial obligations, such as a mortgage or student loans
  • Are looking for a simple and straightforward insurance option

What Are the Benefits of Term Life Insurance?

A term life insurance policy offers several benefits over other types of life insurance that may fit your needs. Here are a few of those advantages:

Affordability

Term life insurance typically has lower premiums than permanent life insurance, making it more accessible and budget-friendly for many people.

Flexibility

Term life insurance allows you to choose the length and amount of coverage that suits your needs and goals. You can also adjust your coverage as your needs change over time, by converting, renewing, increasing, or decreasing your policy.

Simplicity

Term life insurance is easy to understand and apply for. You only need to answer a few questions about your health and lifestyle, and in some cases, you may not even need a medical exam.
Understanding Term Life Insurance: A Key Component of Your Financial Plan

Discover how term life insurance offers an affordable way to protect your loved ones, covering essential financial obligations like mortgages and education during a specific period.
Couple using phone together

How Does Term Life Insurance Work?

  1. You choose the amount of coverage and the length of the term that you want. The term can range from 10 to 30 years, depending on the policy and your age. 
  2. You pay a fixed premium for the duration of the term, as long as you keep the policy in force. The premium is based on your age, health, lifestyle, and other factors at the time of application. 
  3. If you die during the term, your beneficiaries receive the usually tax-free death benefit for any purpose; if you outlive the term, your coverage ends, allowing you to renew, convert to permanent, or buy a new policy per your policy options after stopping premium payments.

How Individuals Can Take Advantage of Term Life Insurance

Once you understand the basics of how term life insurance works, it can be helpful to see how this type of policy can be used in the real world. Here are examples of how term life insurance coverage works.

John is a 35-year-old married father of two young children.

He works as an accountant and earns $74,000 a year. He wants to protect his family's financial future in case he dies unexpectedly. He buys a 20-year term life insurance policy with a $500,000 death benefit. If John dies within the 20-year term, his beneficiaries will receive $500,000 tax-free, which they can use to pay off the mortgage, cover living expenses, fund college education or invest for retirement. 
Mother holding her young daughter

Lisa is a 45-year-old single mother of a teenage daughter.

She works as a nurse and earns $81,000 a year. She wants to ensure that her daughter can afford college tuition if she dies before she graduates. She buys a 10-year term life insurance policy with a $100,000 death benefit. If Lisa dies within the 10-year term, her beneficiary will receive $100,000 tax-free, which she can use to pay for college or any other expenses. 

Mark is a 55-year-old married retiree who lives off his pension and savings.

He wants to leave some money for his wife and grandchildren when he dies. He buys a 30-year term life insurance policy with a $250,000 death benefit. If Mark dies within the 30-year term, his beneficiaries will receive $250,000 tax-free, which they can use to supplement their income, pay off debts, travel or donate to charity. 

Types of Term Life Insurance

Level

A level term policy is a popular choice because the premium stays the same for the entire policy term length. With no price increases during this term, it offers an economical way to purchase life insurance. When the term is over, coverage ends.

Convertible

You can typically convert your term policy into a whole life insurance policy without any additional underwriting or undergoing another medical exam unless you increase your coverage.

Increasing

This is a type of term life insurance where the amount of coverage increases over time, usually at a fixed rate or based on inflation. The premium also increases accordingly.

Renewable

This type of policy allows you to renew your term policy for another term without having to undergo a medical exam or provide proof of insurability. This can be useful if you want to maintain your coverage after the initial term expires, but you are not ready to commit to a permanent policy.

In addition to these types, there are a few other variations of term life insurance available, such as:

  • Decreasing term life insurance: This is a type of term life insurance where the amount of coverage decreases over time, usually in line with a debt or obligation, such as a mortgage or a loan. The premium usually remains the same throughout the term.
  • Return of premium term life insurance: This is a type of term life insurance where you get back some or all of the premiums you paid if you outlive the term, minus any fees or charges. The premium is usually higher than for a regular term life insurance policy.
Mother and child swimming in pool

What Affects the Cost of a Term Life Insurance Policy?

The cost of a term life insurance policy depends on a number of factors. Here are some examples:

  • The length of the term: Longer terms are typically more expensive than shorter ones.
  • Your age when applying: Life insurance usually gets more expensive as you get older.
  • Health issues or dangerous hobbies: These could increase the cost or even render you uninsurable.
  • The size of the policy value: Policies with higher pay out values are usually more expensive.
  • Extra benefits: Known as life insurance riders, these extra coverage add-ons tend to increase the cost.

Importance of an Insurer's Financial Strength

Selecting an insurer with robust financial strength is vital, as it guarantees that the issuing insurance company is reliable and can fulfill its financial obligations, such as paying out claims. It is always recommended to review an insurer’s financial strength rating before purchasing a policy to ensure the company’s stability and trustworthiness.

With our financial ratings and a heritage of financial strength, Western & Southern has become one of the strongest life insurance groups, offering you stability you can count on. We have knowledgeable financial representatives available to help you with your insurance needs.

Financial Strength

established 1888

Longevity & Stability

96 comdex ranking

Financial Ratings

How to Apply for Term Life Insurance?

Applying for term life insurance is easy and convenient with Western & Southern.

  1. You can get a free quote online and choose the coverage and term that suit your needs.
  2. You can also compare different types of term life insurance policies and see how they fit your budget.
  3. Depending on the policy and the amount of coverage you choose, you may need to answer some health and lifestyle questions, and in some cases, undergo a medical exam. 
  4. We will review your application and let you know if you are approved, and if so, at what rate. You can then review your policy and sign it electronically.

If you have any questions or need any assistance, our friendly and knowledgeable representatives are here to help you. You can also access your policy information and make changes online anytime.

Protection for Your Family

Protection for Your Family

If you need affordable protection for your loved ones get a FREE online term life insurance quote from Fabric by Gerber Life.1 
Get My Free Quote

Frequently Asked Questions

Is it worth having term life insurance?
Yes, term life insurance is worth it if you have specific debts or time-boxed expenses that you want to ensure your dependents can afford in case of your passing. This could include things like a mortgage, credit card balance, school tuition, or car payments. 

Which is better term life or whole life insurance?
Whole life insurance offers permanent coverage, cash value, and long-term financial protection, making it a better option compared to term life insurance for some individuals. Term life may be more affordable, but it only lasts for a specific period of time.

How do I calculate my term life insurance coverage needs?
To calculate your term life insurance coverage needs, consider factors such as your income, existing coverage, and future financial goals. You can use techniques like the 10x salary rule or the DIME formula to estimate the right coverage amount. 
IMPORTANT DISCLOSURES

1 Term Life Insurance from Fabric by Gerber Life, a member of the Western & Southern Financial Group Family of Companies. https://www.westernsouthern.com/about/family-of-companies.

These policies and benefits may not be available in all states, and benefits may vary by state.

Payment of benefits under the life insurance policy is the obligation of, and is guaranteed by, the issuing company. Guarantees are based on the claims-paying ability of the issuer. Products are backed by the full financial strength of the issuing company.

Life insurance policies contain certain exclusions, limitations, reductions of benefits and terms for keeping them in force. Please contact a financial representative for complete details.