Term Life is term insurance that is renewable every 10 or 20 years or may be purchaced for a specific number of years. The premium stays level throughout the term period. After the term period expires, it is automatically renewed for another identical term with no additional underwriting necessary, and it is renewable up to age 85. Upon renewal, new level premiums take effect based on your attained age.
Term 10 / 20 is Convertible
If you decide that your needs would be better served by permanent insurance later on, you can convert your term policy into a permanent life insurance plan prior to age 65, without underwriting. Since no one can guarantee your health 10 or 20 years in the future, the ability to convert to permanent insurance with no underwriting is a very important feature to ensure you have the option to have insurance protection for life
Who should buy Term 10 / 20 Insurance?
- Term insurance is the most economical way to insure those with temporary financial protection needs. For example:
- Families with young children need financial protection in case of a parent's early death
- Businesses require financial protection when a key employee dies unexpectedly
- To pay off a mortgage or a debt when a partner or spouse passes away.
Term 100 Insurance
Term life insurance provides protection for a specified number of years. Common examples are Term 10, which provides coverage for 10 years and can usually be renewed for another 10 years for a higher premium. Most term plans end by age 75 or 80, even though your need for insurance may continue.
There is a form of term insurance that provides coverage for life. It's called Term 100 or Term To 100, though coverage does not usually end at age 100.
There are other ways to get lifetime protection. You could buy a flexible product like universal life (UL) that combines term insurance with tax-deferred savings. By paying the minimum premium, the savings element disappears, leaving Term 100. The drawback is that the universal life plan is usually more expensive.
Do You Need Term 100?
Term 100 is an excellent solution if you are looking for life insurance protection for your entire life. The plans are usually simple and offer many guarantees. If you also want to take advantage of tax-deferred savings, consider universal life or guaranteed universal life instead.