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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.
Term Life Insurance Explained
Term life insurance is the most common option that people chose to ensure that their loved ones are taken care of even after they are gone. Understanding what term life insurance is can help you figure out which options are the best ones for you and your situation. Level and Decreasing Term Life Insurance While decreasing and level are the two basic types of term life insurance, nearly all policies written today are level. A significant reason for this preference from a consumer's point of view is that a policy that is written with a level term pays out the same amount in benefits regardless of when death occurs in the policy period. Alternatively, a life insurance policy with a decreasing term provides a death benefit that decreases at certain intervals during the policy term. Different Levels of Insurance Term life insurance that can be renewed each year used to be a popular financial vehicle. This is no longer the case as most policies now renew at intervals that span a number of years. These terms can range from five years up to 30 years or more. Some policies renew up until the insured reaches a certain age which is typically 65. The most popular renewal level for level insurance is a 20 year term. Many insurance companies decline to offer their customers a life insurance policy with a term that ends after they turn 80 years old. The Relationship Between Your Health and Level Your age as well as your health when you purchase a policy are the biggest determinants of your costs. For a policy that renews at 20 years, for example, your premiums will likely remain the same throughout that entire time span. Some policies guarantee that you will not experience a rate increase while others do not. It is often worth the time and effort to contact your insurance agent to discover the options for you.
William Jordan
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