Term Life Insurance
Want help deciding if term life insurance is a good option for you? Come to the skilled, savvy agents of Sun Coast Legacy Advisors. We're well situated in Central Florida, close enough to you to provide quick, personal service.
Simply put, term life is a form of life insurance that has a fixed premium rate and covers you for only a specified time: that's the "term." Your term can run anywhere from one year to five, 10, 15, 20, 25, or 30 years. It's up to you. Should you die at any time during the term period you've chosen, you have a guaranteed death benefit, which will be paid to your beneficiary.
As it happens, many people purchase term life insurance to handle expenses in the event of their death - to pay off their mortgage, for example, or for child rearing, college tuition, or ensuring that their survivors don't suffer a debilitating loss of income. Normally, term life insurance is the biggest death benefit protection you can buy for your premium dollar. That's a major reason why businesses frequently offer term life insurance to their key employees, as an incentive.
Be advised that your term life insurance policy does not grow in cash value - unless you include a Return of Premium Rider (ROP). Though you can renew the term each year after the guaranteed term has expired, the premiums will increase each subsequent year.
Some term life plans permit you the option of converting to a permanent policy - whole life or universal life, for instance. This enables you to stay covered, but you will shell out more in premium dollars for a permanent policy.
For further information on term life insurance and how it could benefit you and your loved ones, contact Sun Coast Legacy Advisors today. Think of us as your personal Central Florida-area insurance resource!
How Much Life Insurance Should I Buy?
The industry standard is that the death benefit of your term life insurance should be 10 times or 20 times (or some other multiple) of your annual income. However, the best approach is to determine your own personal needs to make sure your survivors will receive enough life insurance benefits to meet their financial needs in the event of your death.
To estimate an appropriate death benefit, you and your beneficiaries should make a list and estimate the expenses that need to be considered. This could include the cost of paying funeral expenses and the amount that your loved ones must have for mortgage payments, household expenses, education, etc. The end result of this process is to determine the amount of life insurance you should own in order to provide enough for your beneficiaries.
However, without seeking professional advice from a licensed life insurance agent, you could be talked into signing up for the wrong amount of insurance. Our team of Central Florida professionals at Sun Coast Legacy Advisors are ready to help you and investigate which policies could be suitable to your long term goals. It’s essential that you are given complete information from an experienced insurance professional before you determine a coverage amount. Contact us today and we can help you get the information you need!
Is Term Life Insurance Right for Me?
Term life insurance policies are the most convenient way to purchase life insurance because the purchase is simple and term life premiums are very inexpensive compared to other types of life insurance. Our knowledgeable insurance agents are part of the Central Florida community and will help you understand why selecting life insurance could be important to your long-term goals.
The majority of people buy life insurance in order to leave enough money to provide for dependents, such as small children, non-working spouses, or aging parents, should you die while still supporting them. Term life insurance is sometimes a good way to save what you’ve earned today for future needs, both those you expect and those you don’t.
Term life insurance can be an especially good tool in the following scenarios:
- Replacing income for dependents: If family members depend on your income, term life insurance can replace that income after your death.
- Paying Funeral Expenses: Term life insurance can provide additional funds for your funeral and burial costs, probate and other estate administration costs, debts, and medical expenses not covered by health insurance.
- Paying federal “death” taxes and state “death” taxes: Term life insurance benefits can help pay estate taxes so your heirs don’t have to liquidate other assets or take a smaller inheritance.
- Making significant charitable contributions: By naming a charity to be the beneficiary of your term life insurance, you can make a much larger contribution than if you gave the charity the cash equivalent of the policy’s premiums.
It’s important to note that a term life insurance policy covers you for a specified amount of time (usually from 1 to 30 years). If you choose a $1,000,000 term life insurance policy for a 20-year period and you die within any of those 20 years, your beneficiary will receive the million dollars. However, if you’re still living at the end of the term, your term life insurance policy will be expired unless you can renew the policy. When you renew (assuming your term life insurance policy has that feature), you’ll renew at a higher price that is calculated based on your older age. If you’re looking for a life insurance policy that builds value and makes benefits available when you die no matter when that is, you should consider a whole life insurance policy, as described here: What Is the Difference Between Term Life Insurance and Whole Life Insurance?
Our professional insurance agents are ready to help you as we’ve helped so many others in the Central Florida area. Contact Sun Coast Legacy Advisors today so we can help you start exploring your term life insurance options.