Term Life Insurance
Term Life Insurance
Term life insurance is an inexpensive and easy way to protect your family from the uncertainty that comes with someone passing away. It provides a death benefit in exchange for a monthly payment — this way, you’ll have peace of mind knowing that your family is protected if anything should happen.
What Is Term Life Insurance?
Life insurance comes in two primary categories: term life and permanent life insurance. While permanent life insurance has higher premiums that can make coverage unaffordable for many families, term life is an excellent option. It’s reasonably priced and offers an amount of coverage that can protect your family if the worst should happen.
Term life insurance provides coverage for a set period of time. Policies typically last between ten and 30 years, though you may find some policies that cover 40 years (at Everyday Life, for example). If you die during that time, a cash benefit is paid to your family or other beneficiaries that you name in your policy. This payment can be used to cover funeral expenses, outstanding debts, daily living expenses, education costs, and more.
Term life insurance is simple, affordable, and flexible to meet your needs.
What Are the Benefits of Term Life Insurance?
Simplicity
Term is the purest form of life insurance — it’s designed to pay your beneficiaries if you pass away prematurely, and that’s it. Term policies aren’t weighed down by complicated investment components. Instead, they’re much easier to manage.
When you work with Everyday Life Insurance, you’ll get matched with a policy that meets your coverage needs. That way, the ending of your policy term matches with the end of your need for coverage.
Affordability
Term life insurance is much more affordable than permanent life insurance because it offers coverage for a limited period. If nothing happens to you during the set term, your policy will expire and the insurance company will never have to pay out the benefits — that’s why your term insurance premiums are lower. This makes it an attractive option for individuals who want to ensure financial protection for their loved ones but anticipate that their needs will change over time (kids grow up, etc.).
Flexibility
With term life insurance, you get to choose the term length and coverage amount. You’re not stuck paying premiums for years of coverage you don’t need. You can also buy multiple, separate term life policies for different areas of your life. Typically coverage ranges from 5 to 30 years.
Its Cost is Guaranteed
Once you enter into an agreement with the insurance company and purchase the policy, your insurance company cannot raise your premiums due to illness or other life circumstances. Your rates are guaranteed to remain the same as what you signed up for. Compare that to a whole life plan where your insurer has the right to change the cost of your premiums under certain conditions.
Term life takes the stress out of worrying that an unforeseen event could make life insurance more expensive.
Expert Tip
"The best policy is one you can actually afford, so unless money is no object for you, I think it's more useful to think about it in terms of your monthly budget than in terms of coverage amount. I would aim to spend about 2% of your income on term life insurance. Most people can confidently fit that into their budget without sacrificing other goals; this ensures the policy will still be in force when it matters most."
– Jake Tamarkin, President & Co-Founder of Everyday Life Insurance
Finding the Best Term Life Insurance for You
The easiest and most thorough way to find the best life insurance for you is by using The Ultimate Life Insurance Calculator tool right now to get a quote — it only takes two minutes and you don’t have to give any contact information.
What goes into finding the perfect policy?
- Term Length: Selecting the appropriate term length is crucial. The duration of financial responsibilities is carefully analyzed to determine the right term length for you. The goal is to have coverage that aligns with the timeframe during which your loved ones might need financial support.
- Coverage Amount: Determining the right amount of coverage is essential. We consider factors such as the age and needs of both the policyholder & beneficiaries, any mortgage payments, education costs, and more. This information is used to accurately assess your financial responsibilities and ensure your policy would cover them.
- Health and Age: Premiums for term life insurance are often based on the insured’s age and health. Generally, younger and healthier individuals enjoy lower premiums. Undergoing a medical examination might be necessary to determine the final premium rate.
Term laddering is an insurance strategy that grows with you.
Coverage That Always Suits Your Needs
But finding the “perfect” policy for you might not be a once and done deal. Afterall, coverage is based on the needs & financial circumstances of you and your family. Your finances, dependents, and financial obligations are going to ebb and flow for the rest of your life. That’s why we make Term Laddering available to our clients.
What is term laddering? Laddered life insurance policies can reduce the cost of your life insurance policy over the longer term. The ladder strategy is designed with the following premise in mind – as you get older, your children grow up and your savings increase, which means your financial obligations decrease and you need less life insurance coverage.
Laddered life insurance policies can reduce the cost of your life insurance policy over the longer term. Instead of purchasing a single, 30-year term policy, you purchase different policies at different lengths and ladder them on top of each other so that they expire at different times. As the laddered policies come to an end, the costs automatically go down, leaving you only with the coverage you need and premium payments lower.
Get Your Life Insurance Quote Online With Everyday Life
Term life insurance is a valuable tool for individuals seeking to protect their loved ones from the financial repercussions of their premature death. It offers an affordable and flexible solution, allowing policyholders to customize their coverage to meet their specific needs and timeframes. But what’s the best way to get started? Use our online life insurance calculator or talk to one of our experts to get your policy in motion.
Term Life Insurance FAQs
It depends on your age, health, and lifestyle, but many people are surprised by how affordable it can be. A healthy 30-year-old non-smoker might pay around $25–$40 per month for a $1 million, 20-year term life insurance policy. Everyday Life’s ultimate life insurance calculator can estimate what coverage and price fit your specific situation in just a few minutes, try it out.
The biggest downside is that it eventually expires. If you outlive your policy, your coverage ends, and there’s no cash value or payout. That said, the trade-off is affordability. Term life gives you high coverage for much lower premiums than whole life insurance, making it a smart choice for most families during their key earning years.
No, term life insurance doesn’t have a cash value, so there’s nothing to cash out. It’s designed purely for protection, not as an investment. If you want both protection and a savings component, you’d need to look at whole life insurance. But for your average American family, term life provides the right amount of coverage at the best value.
When your 20-year policy ends, your coverage stops, unless you choose to renew, convert it to a permanent policy, or buy new coverage.
If you outlive your policy, your policy simply expires, and no benefits are paid out. By that point, many people have fewer financial obligations (like childcare or paying off a mortgage) so they no longer need as much life insurance. Even if your life insurance hasn’t expired yet, it’s a good idea to review your policy annually or at least around major life changes. You might be able to save money or increase your coverage at an affordable rate.
