Term Life Insurance is the most basic and easiest to understand form of life insurance, available in Richmond and the surrounding areas through Seward Insurance Group. Term Life Insurance offers the least expensive way to provide substantial coverage for a specific period of time, and is the most common choice because of those attributes. Term Life Insurance is often a good option for people starting families and buying homes, especially when budgets are often tight during those family-formation years. Mortgages and college educations are major financial concerns with finite time frames that Term Life Insurance coverage can provide protection for until those obligations are met and no longer exist.
There are five main types of Term Life Insurance policies: Renewable, Level, Decreasing, Convertible and Return of Premium. Each of these types of term policies maintains a level coverage amount except for the Decreasing Term policy.
1) Renewable Term Life Insurance policies are renewed annually without medical examination or evidence of good health, and generally offer the lowest initial premiums which are attractive for those needing coverage with small budgets that are anticipating higher future income to cover the rising premium costs of Renewable Term Life Insurance.
2) Level Term Life Insurance policies offer fixed annual premium costs guaranteed for the length of the policy term which are generally ten, fifteen, twenty, and twenty five or thirty years. The advantage of these type policies is they provide a fixed cost for existing budgets.
3) Decreasing Term Life Insurance policies provide fixed annual premium costs guaranteed for the length of the policy term with a gradual reduction of benefits designed to coincide with lowering debt obligations such as mortgages.
4) Convertible Term Life Insurance policies offer the policyholder the option of converting to a permanent or cash value policy prior to the expiration of their term without a medical exam or evidence of insurability; generally up to seventy years of age depending on the insurance carrier. Conversion allows coverage to continue for life with a level premium.
5) Return of Premium Term Life Insurance policies will return all of the premium payments that you have made on the policy provided they have been made for the entire term period. The premium differential between these policies and a comparable level term policy can exceed twenty to thirty percent.
If you have questions about term life insurance please contact Seward Insurance Group for more detailed information and answers to questions you may have about these plans.