Which Type of Term Life Insurance is Right for You?
When it comes to term life insurance, you have a few different choices. If cost is the main driver in your decision, you could simply purchase the most economical option as your choice. A simple term policy that covers you until your children are grown or until you retire might be sufficient. If you are looking for more comprehensive coverage, a term product that offers additional features such as return of premium, living benefits or the potential for lifetime coverage could make sense. To make the decision process a little easier, we have decided to offer a list of term life insurance options that fulfill a wide spectrum of coverage needs and goals. Which type of term life insurance is right for you?
Goal: The Most Affordable Term Life Insurance
If your goal is to simply find the most affordable life insurance coverage, the good news is that term life insurance rates have never been lower. In fact, every year it seems at least several companies lower their rates in an effort to be more competitive, which is great for consumers. If you are looking for the most affordable coverage, it makes sense to shop around. There are many companies out there that are A rated or better offering affordable life insurance coverage rates. We shop over 40 companies to find our clients the best rates based on age, health rating, amount of coverage and desired term. Here are some 20 and 30 year sample monthly rates for basic term coverage from various A rated companies we can access for our clients. Rates are for 35 year old male and female non-smoker applicants in excellent health.
| Male | 20 Years | 30 Years |
|---|---|---|
| $250,000 | $14.13 | $23.38 |
| $500,000 | $22.23 | $39.24 |
| $1,000,000 | $37.99 | $70.03 |
| Female | 20 Years | 30 Years |
|---|---|---|
| $250,000 | $12.80 | $19.82 |
| $500,000 | $19.42 | $33.37 |
| $1,000,000 | $32.57 | $59.12 |
As you can see, term life insurance rates are very affordable. If you would like a quote for your specific situation, you can use our quoting tool to get a free quote. If you have health issues or specific questions about a quote, simply call us at 888-687-9444 to speak to an expert.
Goal: Term Life Insurance with Living Benefits
One issue people have with term life insurance is that it only provides a benefit if they die. Did you know that there are some term policies that offer living benefits that can be used during the life of the policy? This can provide peace of mind above and beyond a death benefit. These products allow you to accelerate the death benefit if you become chronically ill, critically ill or terminally ill. Each company sets its own conditions required to qualify for access to these riders, so it is important to know exactly how each rider works before purchasing a term policy with living benefits. Read more about term life insurance with living benefits.
Another innovative product that offers living benefits is Prudential’s TermWork Life 65. The policy covers you up to age 65 and can be purchased as early as age 25. This term product comes with two features built into the policy that offer a waiver of premium for disability and a waiver of premium for unemployment. It is slightly more expensive than other term policies, but the features that are included could make it the right fit for someone looking for a comprehensive term coverage solution. Read more about Prudential’s TermWork Life 65.
Recently, a another unique new term program hit the market from John Hancock. It is called the John Hancock Vitality Program and it allows you to lower your premiums each year and earn rewards for living a healthy lifestyle. When you purchase your policy, John Hancock will give you a complimentary Fitbit device to track your personalized health goals. By leading a healthy lifestyle, you can qualify for an annual reduction in premiums, hotel and retail discounts as well as gift cards from various retailers. Achieving the highest status to qualify for these benefits is actually attainable for almost anyone. It is an excellent way to get more out of your term policy. Read more about John Hancock’s Vitality Program.
Goal: You Don’t Want to Take the Medical Exam
There are several companies out there that offer excellent no medical exam life insurance options. The benefit to no medical exam life insurance is that the application process is easy and there is a fast turnaround time on the decision. The drawbacks are that coverage limits are lower than traditional fully underwritten coverage and premiums are more expensive. There are several types of no medical exam policies, some requiring you to be healthy to qualify and others that do not. The type of no medical exam policy that is right for you will depend on your situation. We can help you find the policy that will be the best fit for your situation. Read more about life insurance with no medical exam.
Goal: Get Premiums Back if You Outlive Your Policy
As we mentioned before, some people feel that the drawback to term life insurance is that you only receive a benefit if you die within the term. What if you could get back all of the premiums you paid into the policy if you outlived your term coverage? This type of policy is called return of premium term life insurance. Return of premium costs more than traditional term coverage but does allow you to recoup all of your premiums if you hold the policy for the full term. Beware though; if you let the policy lapse before the full term, you will only receive little or none of the premiums you paid into the policy. Read more about return of premium term life insurance.
Goal: Term-Like Coverage that Lasts Forever
Guaranteed universal life isn’t actually term life insurance but we thought we would add it here because it is structured much like term life insurance in some ways. Guaranteed universal life is a permanent life insurance product that offers guaranteed premiums and death benefit that can last all the way up to age 121. Premiums are lower for this type of permanent coverage because it is not designed to build cash value like whole life or other traditional universal life policies. As long as you pay your premiums on time, you will have guaranteed coverage to age 121. It is an excellent option for those who are mostly interested in permanent death benefit protection and lower premiums, not cash value accumulation. Read more about guaranteed universal life insurance.
Which Type of Term Life Insurance is Right for You?
As you can see, there are some very versatile term life insurance products on the market today. Picking the one that is right for you will ultimately depend on which features and goals are most important to you. We can help you find the right term coverage whether you want a simple term product or one with multiple features. Email us or give us a call at 888-687-9444 if you have any question about what type of term coverage is right for you.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
