So you know you need life insurance but what kind should you buy? Life insurance ranges from permanent to term – and if term- what kind?
Let’s discuss the basics and the different types you can choose from. Level term insurance means that the death benefit as well as the cost of the insurance will remain the same for a certain period of time. These periods can be from one year Annual Renewable Term to 10, 20, or 30 year term periods. Most term policies will automatically renew after the term period is expired, but the actual price or premium will increase substantially each year after the initial level term period.
Why buy Term?
The main reason for buying term insurance is the cost. A young family might need a substantial amount of life insurance protection and can’t afford the cost of permanent coverage for the amount of insurance needed. They can purchase a large level term policy for 20 years at an affordable rate while the kids are still at home.
Why is Term Insurance cheap?
The odds are that you will outlive your term insurance policy. A 30 year old Preferred Male has a 98.3% chance of living past 20 years while a woman the same age has a 98.8% chance. Even a 50 year old has an 84.7% chance of living more than 20 years. Based on these statistics and the fact that life expectancy has increased over the last century, you can see why rates have continued to decrease and have become more competitive.
The New Term Insurance – ABR riders
In recent years certain insurance companies have upped their game by adding Accelerated Benefit Riders to their life policies. This ABR rider allows the insured to negotiate a cash settlement of their life insurance policy while they are alive if they experience one or more of up to 16 different medical conditions. Most companies only add this to permanent policies, but American National Insurance Company (ANICO) includes this rider free on all of their Term policies. This is a huge game changer!
Combining this with better rates is reason alone to get a Term Check Up if you have term insurance or get a quote from us, if you are looking to get term insurance now. Contact the Samaha Insurance Agency today, whether by phone or email for more information. There is never any pressure from us, only information and our motto is “It’s not about us, it’s always about you!