What Is Term Life Insurance?
Term life insurance is the purest, most basic form of life insurance coverage. These types of plans give your family protection for a certain time period in case anything happens to you. When you buy a term life insurance plan, you pay a monthly premium in exchange for a set amount of coverage that will last for a defined term. If you pass away before this term is over, your policy will be paid out to your beneficiaries; if you are still alive when the term expires, you must either renew your policy, purchase new coverage or go without.
For example, Jeff is married with two young kids and works full-time. He might purchase a term life plan with $400,000 that lasts for 30 years, with a monthly premium of $30.68 a month. As long as he pays his monthly premium, he has the peace of mind that if he dies prematurely, that $400,000 will go towards providing for his kids’ needs, paying for his funeral costs, etc. Jeff chose a 30 year policy with the expectation that in 30 years, he will be close to retirement, his kids will likely be self-supporting, and he will have built up enough savings to support his spouse, so he won’t need life insurance coverage anymore. The plan will end, and so will the premiums.
Finding a term life plan can be difficult, but Everyday Life makes it easier with our Needs Assessment Tool that can help you quickly discover how much coverage you need, evaluate your options and what price you should expect to pay! Our term life insurance plans are personally tailored to your changing circumstances and automatically update overtime so you never overpay for coverage. Get a personalized recommendation and price quote online now without having to provide any contact information or deal with pushy salespeople.
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Term Life Plans VS Permanent (Whole) Life Plans
People searching for life insurance have two main options for coverage – term or permanent. Term life insurance, as explained above, gives you protection for a set period, which is usually anywhere between 10 and 30 years (Everyday Life plans may go up to 40 years). Permanent life insurance has several variations (most common are whole life and universal life), but all offer protection for your entire life; no matter when you die, your policy will be paid out to your beneficiaries. Permanent life plans are generally 5 to 10 timesmore expensive and much more complex than term life plans.
We strongly believe – and most Certified Financial Planners would agree – that life insurance should always be thought of as a safety net, and shouldn’t be anything else! You need a safety net for a season of your life where your family would be in trouble without the income and caregiving support you provide; you don’t need a safety net years later, when no one truly needs your support to get by. For this reason, term life insurance is the option that makes the most sense for most Amercians.
How Everyday Life’s Term Life Plans Are Unique
The term life insurance plans that our company offers are different from other term life plans you will find online. We describe them as dynamic or smart term life plans, because they save you money by automatically adjusting your coverage over the course of your policy based on major life events such as buying a house, kids graduating, retiring, and more. These life events will affect your coverage needs, and this approach can save you money by helping you avoid the all-too-common situation where the coverage you bought a few years ago now greatly exceeds your current needs, but you’re stuck because your policy can’t adjust.
See, most companies will offer a bulk coverage for the life of the plan – like Jeff’s $400,000 for 30 years. You would pay the same premium every month for the same amount of coverage for the entire 30 year period. That’s certainly better than paying premiums for your entire life, like you would if you bought a permanent life policy, but it still doesn’t make much financial sense when you take a closer look. For the first few years, if you are in a situation where you have young dependents and a new mortgage, then it makes sense to pay for that much coverage. But every few years, your need for insurance goes down as your kids get older, you pay off more of your mortgage, and you build your savings.
Our plans reflect your real, everyday life. We assess how much coverage you will need at the beginning of your term life plan, and then use predictive technology that calibrates changes to phase down your coverage over time. This means that at any point in the life of your policy, you are only paying a premium for the coverage you absolutely need! Our approach to term life insurance saves you thousands of dollars compared to other companies’ plans. This is the approach recommended by great financial planners – they call it “policy stacking” or “term laddering” – but before we came along it was very hard to do without the assistance of a high priced financial advisor. Now, with our technology, anyone who needs it can quickly and easily protect their family with smart life insurance that won’t bust their budget!
Want to find out how much you could save with our term life insurance? Take our Needs Assessment Tool today!