Term Life Insurance
We offer our clients a full view of the industry prices with term life insurance. If you have a need for short term or long term coverage and would like to discuss different products that fit your need, call us today.
When you call us we first determine how much insurance you feel is necessary to put in place for you and your loved ones. Once an amount is chosen we talk about the length of time you need the insurance to be in place. We offer what is called “level” term life policies. What this means is: The monthly premium and the death benefit never increase nor decrease during the duration of the policy term. There are typically three common lengths in which term policies are structured, 10 years, 20 years, and 30 years. Logically if you purchase a 10 year life insurance policy, the monthly premium will be lower than if you purchased a 30 year policy. Some companies offer other lengths such as 15 and 25 year terms. Talk to one of our agents to find the term length that best suits your time horizon by filling out our Quote Form.
What are the Advantages of Term Life?
The primary advantage to term life insurance is that it is affordable. Think of term life insurance the way you do car insurance. One pays a monthly premium for a specific amount of time and when that time period is over so is the insurance. Simple, Reliable, and Affordable. Term Life insurance can be a fantastic tool to give a family the peace of mind that their loved ones will not be burdened in the event of one’s passing. For families who are on a limited budget, term insurance can offer that protection comfortably and affordably.
The other advantage to term insurance is that we can structure the length of term around your personal needs. All life insurance products are truly contracted on a month to month basis. If you sign up for a 20 year term insurance plan, you are not held to pay those premiums for 20 years. The time of a term policy contract is a guarantee which the insurance company gives you, promising to not change the death benefit or monthly premium. Thats it! For example, a family who needs to protect themselves for 17 years while they finish paying off their mortgage can purchase a 20 year term insurance plan. At the end of the 17 years they can assess whether or not the insurance still remains necessary, and decide to keep, drop, or convert the policy. Always discuss with your agent your options regarding “term policy conversion” before dropping a life insurance policy.
Most insurance companies offered in California will guarantee their clients what is called “evidence of insurability”. This means that during the term life insurance policy you may convert to a permanent insurance policy, and do so without taking a medical exam. In essence you do not have to prove that you are “insurable” as long as you remain with that particular insurance company and convert it within the time period in which the term insurance contract states you are eligible. This can be a very valuable option in certain circumstances. For example, if the insured is diagnosed with a terminal illness or in need of taking advantage of the benefits of permanent insurance, the client can convert from a term insurance plan to a permanent insurance plan without having to subject themselves to underwriting. You are guaranteed coverage regardless of past health or current health status. 
What are the Disadvantages to Term Life?
There are a couple disadvantages to term life insurance. The first is that the term insurance will eventually end at its attractive monthly rate will end with it. Once the length of the term is over, the premiums for that term policy are no longer guaranteed. So the price in which the insured has been paying during the guaranteed period will increase, sometimes dramatically. In the insurance industry we call this “blowing up”. Once a term policy has blown up, the monthly premiums then sky rocket to a price that not many people are prepared to pay. At that point they either let the policy lapse and stop paying, or they convert to a Permanent Insurance Policy.
Another disadvantage to term insurance is that if the insured does not pass away they end up paying into a policy for many years and have nothing to show for it at the end of the term. Term insurance is inexpensive because the insurance companies are banking on the insured to outlive the policy. Most insurance companies protect themselves by not allowing someone to obtain a term insurance policy that lasts past the age of eighty. This day in age people are living longer and healthier lives in which one is unlikely to see a term policy death benefit actually materialize.
What is the solution to these Disadvantages?
