What is Term Life Insurance?
Term Life insurance covers you for a specific term or span of years. If you die during the term while coverage is in force your policy beneficiary is paid the full death benefit, subject to the terms of your policy.
What is Return of Premium Term Life insurance (ROP Term)?
ROP Term is an innovative new product designed for those who "expect the best but prepare for the worst." Just as described above for regular Term Life, with ROP term, if you die during the policy term, your beneficiary gets the insurance benefit from your in-force policy, but what's new is, if you keep your policy in force and live, you will get 100% of your base policy premiums back at the end of the term period you selected. If you cancel the policy after the first few policy years, a portion of premiums are returned. The early refund is an increasing percentage until it reaches 100% at the end of your selected policy term.
ROP Term is available in term durations of 15-30 years, depending on your age. Regular term life costs less than ROP but you don't get your premiums back if you stay alive. For help determining what type of policy is best for you, please call the number above. Licensed reps will answer your questions, compare rates of leading carriers head-to-head and give you important information to help you feel confident that you've made the right choice for your needs.
Why do I need Term Life insurance?
Recent studies have found that when a premature death occurs, insufficient life insurance coverage on the part of the insured wage earner results in three-fourths of surviving family members having to take measures such as working additional jobs or longer hours, borrowing money, withdrawing money from savings and investment accounts, and, in too many cases, moving to cheaper housing. Term Life insurance is one of the most cost-effective ways to help protect your family and assets. It pays your policy beneficiaries a set sum should you die during the policy term. Term life typically features premiums that are guaranteed to remain level throughout the initial policy term, allowing you to lock in guaranteed level rates for up to 20 or even 30 years upon policy issue. (http://www.usa.gov/topics/money/insurance/tips.shtml)
I already have life insurance. Should I make a change?
It is wise to periodically review your insurance portfolio to ensure it provides the protection you need for your current stage of life. You may wish to purchase additional coverage, or take advantage of lower rates. Even if you bought a policy within the last few years, your savings could be significant. Life Insurance Central's salaried, licensed representatives can help you determine whether your portfolio needs updating and offer rate quotes from the hundreds of plans in our database.
What is the difference between Term Life and other kinds of life insurance?
Term Life insurance is the simplest kind of life insurance--it pays your survivors the policy amount if you die while the coverage is in force (subject to the provisions of your policy). Level-premium term policies feature guaranteed premiums for the initial premium period, whether it is 5, 10, 15, or as many as 30 years. At the end of the initial premium period most policies are renewable, but your rates may increase each subsequent year, and you may be required to meet the insurer's health criteria in order to renew. Return of Premium Term Life returns 100% of your base policy premiums at the end of the initial premium period.
Whole Life insurance provides lifetime coverage with premiums that remain the same regardless of the insured's age. Whole Life policies can build cash value. Premiums are generally higher than those for Term Life during the guarantee period. Universal Life insurance offers permanent coverage with flexible premiums and face amounts. These policies accumulate cash value, generally through fixed interest or variable returns. Like Whole Life insurance, Universal Life rates are generally higher than Term Life insurance during the guarantee period.
How much coverage should I have, and for how long?
The easiest way to determine the amount of coverage you need is to use our on-line needs calculator. As a rule of thumb, experts recommend you have coverage of at least five to seven times your annual income, but you may find you need more, depending on your age and family situation. Certainly you will want cash to cover day-to-day expenses like grocery and mortgage bills, but also think about your family's future expenses such as tuition for your children's education, replacing the family car, support for aging parents, and so on. Also, think about how long your family will need the protection. If your children are close to college age now and your spouse has a good income, a shorter-term policy may be better for you. But if you want to lock in level premiums for a longer period of time, or you think that a change in your health might make it more difficult to re-qualify for coverage in the future, a long-term policy is the better choice. And in some situations, it may be wisest to combine shorter - and longer - term policies to accommodate your changing needs over time.
What is the best way to buy Term Life insurance?
Premiums for similar policies can vary significantly. Compare prices from a number of different companies to find the best premiums. You should seek the recommendation of an experienced term life representative to select the company that is most likely to offer you the best rate. See the "Why Compare?" tab above for more information on selecting the right company.
Who can I call for premium comparison?
Many companies offer premium comparisons, some for free, others for a fee. The problem with many of these services is that often they provide a long list of companies and prices, but offer little help in selecting the right one for you. Life Insurance Central is different. Life Insurance Central's licensed representatives can help you determine how much coverage you need, and then find a company and policy to meet those needs. Because they are salaried, Life Insurance Central's representatives are concerned with satisfying each customer's needs -- not with meeting a sales quota. They will give you the information you need with no pressure, no obligation, and no charge. Call the number above 7 a.m. to 5 p.m. Pacific Time Mon-Fri to speak to a representative. If you prefer, compare rates online or contact Life Insurance Central via e-mail.