Term Insurance is a life insurance policy that provides a death benefit for a certain period of time (i.e., 10, 15 20 or 30 years). If the insured dies during the specified timeframe and the policy is active, a death benefit will be paid. Term insurance is much less expensive compared to permanent life insurance such as whole life or index universal life insurance. There is no cash value in term insurance.
Benefits of Term Life Insurance
Easy to Understand — Life insurance products can be complicated, but term insurance is easy to understand. It simply provides a death benefit when you die with the policy term as long as your premiums are paid.
Inexpensive — Term insurance is less costly than permanent insurance and offers the best option for a higher death benefit. Since term polices do not have a cash value component and it is for a specified timeframe.
Tax-Free Death Benefit — Your beneficiary or beneficiaries will receive a lump sum payment if you die during your policy term. This benefit is tax-free, so your beneficiary or beneficiaries can keep the full amount.
No Penalty for Canceling — If you decide to cancel an active policy, you will not incur any fees or penalties.
Flexible Payment Options — Term life insurance offers the ability to pay monthly, quarterly, semi-annually or annually. However, most insurance companies charge a processing fee if you do not pay annually.
Schedule a Meeting to Learn About Term Life Insurance
Not sure where to start? Contact Safe Harbor to learn more about life insurance options. We offer a complimentary consultation to review your current coverage and can provide a life insurance strategy that will provide the coverage your family needs. Call our office at (614) 760-0670 to schedule your initial consultation.