Six Major Term Life Insurance Classifications

If you have a family, making plans to safeguard their financial stability should be one of your top priorities. Regardless of whether you commit to a healthy and responsible lifestyle, accidents and other unexpected incidents may occur. In such situations, having the right life insurance can make all the difference as loved ones attempt to navigate their grief while managing financial implications. Understanding different types of term life insurance can be critical.

Which Type of Term Life Insurance Is Right for Me?

Alongside whole life policies, term life insurance, which typically offers coverage for a set period of time, makes up one of the two primary pillars of the market. These policies may come in many forms themselves, including the following:

1. Level term—This type of life insurance is most common. It establishes an unchangeable premium and death benefit throughout the term of your policy, which may often range from 10 to 30 years.
2. Increasing term—As its name may suggest, this form provides an increasing amount of coverage over time and may be helpful for those who expect to have greater financial needs in the future.
3. Decreasing term—Conversely, these policies reduce the death benefit and the cost of maintaining coverage as time goes on and they may be suitable if you expect to have fewer fiscal obligations down the road.
4. Renewable term—These policies can be renewed after their term expires, although your rates may change.
5. Convertible term—This type of policy can be converted into a whole life insurance policy, which can provide permanent coverage, albeit at a greater cost.
6. Return-of-premium term—This form of coverage can offer the possibility of recouping at least some of your payments should the insured outlive the policy’s term. Premiums may be significantly higher for these policies.

We’re Here to Help

Contact SIA, LLC in Kendallville, Indiana, today to learn more about term life insurance options and select an ideal policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.