Are you looking for a fast and simple way to protect your business and family if you fall ill, become disabled or pass away unexpectedly? If so, term insurance might be the right financial protection path for you.

What is Term Life Insurance?

Term life insurance is used as a critical tool in wealth and financial management. Essentially, you pay a monthly premium for cash benefits in the event of your passing or any other life-changing event that prevents you from earning the same amount of income. Your designated beneficiary will receive a one-time payment from the insurance company so that they can pay outstanding debt and on-going bills that have a finite number of future payments. Many people choose to use the payout from term life insurance for children’s higher education, the mortgage, business debt and dependent care.

Term Life Insurance
Term Life Benefits


The benefits will vary slightly with each type of plan; however, generally speaking, the benefits are quite similar for most situations. Term life insurance is often the insurance plan with the most coverage and the lowest premiums. It is ideal if you are only in need of insurance for a specific or short period of time. If the policyholder experiences a loss of income for a variety of reasons, such as a disability or a severe illness, the insurance will act as supplemental income. In most instances, the term benefits are paid out in a single payment rather than installations. And the policy will pay out an additional amount with accidental rider benefits in the case of accidental death.

Types of Term Life Insurance Policies

The types of term life insurance policies will vary based on the amount you pay in premiums, the length of time during which your plan is active and the amount of money you or your beneficiary will receive upon payout.

Standard Term Insurance

A standard term life insurance plan is considered the most common term life insurance plan. It is also the most straightforward and simple policy that offers benefits to the beneficiary of the policyholder in the event of an untimely death. The death must occur during the designated active period of time in the policy to receive benefits.

Group Term Life Insurance

Group term life insurance plans offer coverage to a designated group of members. Group members might include associations, businesses, companies, organizations or societies. The benefits are similar to plans for families and individuals with the primary difference being that the amount of coverage is often significantly higher.

Term Return of Premium

A term return of premium (TROP) is a plan that provides repayment if the policyholder survives the duration of the length of the term policy. If the policyholder lives through this period of time, they are awarded a refund of all premium payments excluding any valid tax. Many people use this as an investment alternative for savings.

Online Term Life Insurance

Online term life insurance plans are becoming more popular as they are more convenient and far more transparent. Potential policyholders are able to examine and compare each plan carefully without any added pressure to make a decision within a specific time frame. These plans are also often considered more reliable.

Before You Select a Plan

You should take into consideration a number of aspects before you sect a final plan. Take your time to assess and address all of your needs and the amount of money you can afford to spend on a premium each month. Double check the time frame and the coverage allotment for the policy. If a payout option exists, select the best one for your needs in the future. Carefully select the right insurance provider. They are not all created equally. And remember to select the correct beneficiary. Many people choose a spouse or loved one. You can always change this person at any time for any reason.

Term insurance plans are ideal for providing loved ones and business partners with financial security once you pass or become unable to provide in the same manner. They can also be used as an investment for savings. And keep in mind that, regardless of the policy you choose, if you outlive your term date of expiration, you will have to start a new policy to continue the plan and for your beneficiary to receive the benefits once you do pass. At the end of the day, term life insurance has countless benefits at a highly affordable monthly rate that will leave you and your beneficiaries protected once you are gone or if an accident occurs.

Begin your financial plan today, have a conversation with us.