What is Term Life Insurance?

Annually renewable term life insurance

Historically, term life insurance premiums increased each year as the risk of death became greater. While unpopular, this type of life insurance policy is still available and is commonly referred to as annually renewable term life insurance. 

Guaranteed level term life insurance

Many insurance companies now also offer level term life insurance. This type of life insurance policy has premiums that are designed to remain level for a period of 5, 10, 15, 20, 25 or even 30 years. Level term life insurance policies have become extremely popular because they are very inexpensive and can provide relatively long term coverage. But, be careful! Most level term life insurance policies contain a guarantee of level premiums. However some policies don’t provide such guarantees. Without a guarantee, the life insurance company can surprise you by raising your life insurance rate, even during the time in which you expected your premiums to remain level. Needless to say, it is important to make sure that you understand the terms of any life insurance policy you are considering.

Why Purchase Term Life Insurance

Term Life insurance is the most affordable low cost type of life insurance. Term life insurance is most commonly purchased for the following reasons:

Cover debts / liabilities (i.e. Mortgage)

Sustain your spouse’s standard of living

To provide for your children

To pay for schooling or daycare for your children

To fund a buy-sell agreement for your business

Protect your business from a key employee death

At ObamaCare and more we provide unparalleled service. We will make sure that you understand the terms of your life insurance policy. We will also only quote you guaranteed level term life insurance to ensure that there are no surprises.

Return of premium term life insurance

Return of premium term life insurance (ROP) is a relatively new type of life insurance policy that offers a guaranteed refund of the life insurance premiums at the end of the term period assuming the insured is still living. This type of term life insurance policy is a bit more expensive than regular term life insurance, but the premiums are designed to remain level. These return of premium term life insurance policies are available in 15, 20, or 30-year term versions. Consumer interest in these plans has continued to grow each year, as they are often significantly less expensive than permanent types of life insurance, yet, like many permanent plans, they still may offer cash surrender values if the insured doesn’t die. The purchase of a term life insurance policy is one of the easiest ways to provide for the financial well-being of your family or business.

Term Life insurance is also a more affordable and preferred option over Mortgage Insurance.  If you purchase Mortgage Insurance, the policy proceeds are paid to the bank. If you purchase Term Life insurance the policy proceeds are paid to your beneficiary.