Term Life Insurance
Term Life Insurance financially protects against the death of the insured during a specified time period and can provide real peace of mind at a reasonable cost.
Types of Term Life Insurance
Term Life is an inexpensive type of policy used to assist with short term financial responsibilities, such as mortgage payments, college tuition, consumer debts, etc. There are several different types including:
Tax Consequences
Term Life Insurance benefits are usually tax-free, provided the policy is current. According to the IRS, if the policy is under $50,000, Term Life premiums can be paid for by the insured, his or her company, or a combination of both, with no tax consequences. Policies over $50,000 may be subject to Social Security and Medicare taxes.
One can also obtain coverage from more than one insurance company and for one's spouse and dependents. Life Insurance has typically targeted men because they are traditionally the principle wage earner of the family. However women, particularly single mothers, also need coverage to provide for their dependents.
Obtaining Term Life Insurance
Getting insured is easy. Here's what to do:
There's peace of mind in knowing that one's family will be covered financially in the event of one's untimely death.
Types of Term Life Insurance
Term Life is an inexpensive type of policy used to assist with short term financial responsibilities, such as mortgage payments, college tuition, consumer debts, etc. There are several different types including:
- Annual Renewable – renewable, good for one year, with low premiums which rise gradually as renewed. Adding an annual renewable term condition to the policy allows for yearly renewal for a given period of time (between 10 and 30 years up to the age of 95).
- Level Term – more common than annual renewable policies. Available in 10, 15, 20, and 30 year policies. Premium costs remain the same during the term of the policy and renewal options are also available.
- Conversion Policy – a good option for those who can't afford the high premiums of a permanent policy. Get a conversion term policy at low rates and convert to a permanent policy later on with no fear of cancellation, without even having to take a physical examination!
Tax Consequences
Term Life Insurance benefits are usually tax-free, provided the policy is current. According to the IRS, if the policy is under $50,000, Term Life premiums can be paid for by the insured, his or her company, or a combination of both, with no tax consequences. Policies over $50,000 may be subject to Social Security and Medicare taxes.
One can also obtain coverage from more than one insurance company and for one's spouse and dependents. Life Insurance has typically targeted men because they are traditionally the principle wage earner of the family. However women, particularly single mothers, also need coverage to provide for their dependents.
Obtaining Term Life Insurance
Getting insured is easy. Here's what to do:
- Comparison shop
- Get the application
- Fill out the paperwork
- Get a physical
- Go through underwriting
- Get Approved!
There's peace of mind in knowing that one's family will be covered financially in the event of one's untimely death.
Instant Issue Term Life will give you coverage WITHOUT a medical examination.
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