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What is Term Life Insurance?
Term life insurance is one of the most affordable types of life insurance that provides financial protection for you and your family for a specific period of time. You can choose the policy term—from 5 to 40 years. If you pass away during the coverage period, your beneficiaries will receive a tax-free lump-sum payment (death benefit). This amount can be used for any purpose, such as paying off debts or covering your family’s living expenses.
Learn more about the most popular types of Term Life Insurance.
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10-Year Term: a short-term and affordable option for those who want financial protection for a specific period, such as during loan repayment or while covering their children’s education costs.
How can you benefit from Term Life Insurance?
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Fixed Premium Costs
Your premium payments (monthly or annual) are set from the start and remain unchanged throughout the term. -
Immediate Temporary Coverage
Once you submit your application and pay the first premium, temporary coverage—lasting up to 90 days—becomes active, giving you peace of mind right away. -
Option to Convert to Permanent Life Insurance
You can convert your term policy to a permanent life insurance plan without taking new medical exams. This option provides lifetime coverage that never expires. -
Guaranteed Death Benefit
In the event of death, your beneficiaries receive a guaranteed, tax-free lump-sum payment. This amount remains constant during the policy term and can be used for any financial need.
Term Life Insurance – Questions & Answer
Advantages and Disadvantages of Term Life Insurance
Term life insurance is purchased for a specific period—such as 10, 15, 20, or 30 years. It provides coverage so that if something happens to you during that time, your beneficiaries will receive the insurance payout.
Advantages
Lower initial cost compared to whole life insurance.
Flexible term length based on your needs and financial capacity.
Suitable for short-term and specific goals, such as paying off a mortgage or supporting your family until children become independent.
Simple to understand and purchase—most people can easily grasp its terms
Disadvantages
Coverage is temporary and expires after the selected term ends.
Premiums increase if the policy is renewed.
Cannot be renewed beyond age 85.
Advantages and Disadvantages of Whole Life Insurance
Whole Life Insurance
Whole life insurance is a type of permanent coverage that lasts for your entire lifetime and never expires. It usually comes with fixed, guaranteed premiums, and some plans include a cash value component.
Advantages
Lifetime coverage with no need for renewal.
Fixed premiums that remain unchanged over time.
Builds cash value that can grow over the years and be used for loans or withdrawals.
Can become more cost-effective than term life insurance in the long run.
Provides long-term financial security for your family, including coverage for final expenses and estate planning.
Disadvantages
Higher initial cost compared to term life insurance.
More complex structure due to cash value and withdrawal conditions.
Combination of Term and Whole Life Insurance
Many people prefer to have both types of life insurance to enjoy the short-term and long-term benefits simultaneously.
Example of a Combined Plan
Term Life Insurance: Covers short-term needs such as mortgage payments or income replacement in the early years.
Whole Life Insurance: Provides long-term protection for family financial planning, retirement costs, and future final expenses.
Benefits of This Combination
Greater flexibility to manage different needs throughout life.
More cost-effective overall compared to having only whole life insurance.
Option to gradually convert term coverage to whole life insurance before age 75.