TERM LIFE INSURANCE FLORIDA
Free Quotes and NO Annoying Phone Calls
Free Quotes and NO Annoying Phone Calls
Term life insurance provides a cash death benefit at a fixed cost for a specific period of time, usually 5, 10, 15, 20 or 30 years. It is the least expensive way to purchase life insurance coverage. Compared to traditional whole it can provide for a much larger benefit for less 1/10th the cost.
Some, but not all term life insurance plans may offer an option to convert the plan to a more permanent plan such as whole life or universal life.
Term life insurance is an affordable life insurance solution. This kind of plan is helpful for those concerned about providing for their families or dependents after they pass away, but who may not want to invest in a permanent, long term plan.
The cost for term insurance is less expensive than permanent policies, as it offers no cash value benefits. The premium for coverage is paid each year, and will cover the risk of death benefits for that time period. In the event that the policy holder does pass away, beneficiaries receive the death benefits, tax-free. Term life insurance comes in several policy types as outlined below:
This is the most common type of term life insurance because it provides great value, at a low cost. The policy provides a set premium for the length of a term, which can vary from 5 years, to 10, 15, 20, and up to 30. These types of plans often offer the policy holder options when the term ends which include: converting the plan into a permanent one extending out the term.
This kind of plan is very beneficial, as it provides a longer term coverage plan, at an affordable price. One thing to look out for when signing a policy is the guarantee that the rate will stay the same throughout the whole term.
This is a unique type of term life insurance policy, which will refund all premium payments if the policy holder lives past the designated term. The policy will provide the death benefit to beneficiaries if the policy holder does pass away, however if they make it to the term, the full amount gets refunded tax free.
It is a plan to invest for the future, while also securing the future for any dependents in the case that something does happen. On average, this type of plan does have a higher cost by about 35% when compared with other plans. However, those additional costs are potential savings for the future. It is important to note that keeping funds in the account for the duration of the term is recommended, as if funds are removed early, the refund will be slim to none. This plan is one you can bet your life on!
This type of plan is renewable on a yearly basis. It is convenient because the plan does not require any proof to be insured in order to renew the plan, until reaching a designated age. This kind of plan can be helpful when a person has unreliable income and needs a plan to hold them over until the next year. Due to the fact that the risk of dying within a 1-year term is relatively low, premiums on these plans are often very affordable.
As a general rule in the life insurance industry, as a person ages, the cost for coverage is going to go up. While costs, can be affordable for a 5-year term at the age of 25, it can be a different story at the age of 40 with pre-existing health conditions. For this reason, it is beneficial in the long run to look for a term insurance plan with good premiums and options for the future.
Before buying life insurance, you should gather personal financial information and review your family’s needs. There are a number of factors to consider when determining how much protection you should have. These include:
Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used is to buy life insurance that is equal to five to seven times your annual gross income.
Term life insurance needs to be purchased for the right amount of time so that you avoid paying higher premiums or having to renew too often. For example, a 70 year old person would probably be fine choosing a 10 year policy, but a family buying insurance to cover a mortgage would want to consider a longer term, say 20 or even 30 years to coincide with the number of years left on the mortgage. If you have to renew a policy, your premiums will increase, which is why you should examine your needs carefully.
Life insurance is an essential part of financial planning. Three big reasons why most people buy term life insurance is to payoff mortgages, replace income that would be lost with the death of a wage earner, and payoff outstanding debt including final expenses.
The cash provided by term life insurance can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents will not have to sell assets to pay outstanding bills or taxes.
An important feature of life insurance is that in most cases no income tax is payable on proceeds paid to beneficiaries. The death benefit of a life policy owned by a C corporation may be included in the calculation of the alternative minimum tax.
Purchasing life insurance is key to any future financial planning. Life insurance gives you the assurance that when you die, your loved ones will have the funds available to maintain the lifestyle they’ve grown accustomed to.
Other term life options include…
Choosing a term life insurance product is an important decision, but it often can be complicated. As with any other major purchase, it is important that you understand your needs and the options available to you. Let our professional insurance advisors help.