What Type of Term Life Insurance Policy Should You Buy?

Life Insurance

Term Life insurance coverage comes in two common policy types. You have Annual Renewable Term or ART, and Level Term. Annual renewable term is a 1 year term policy. That means the coverage lasts for 1 year and at the end of 1 year it lapses. If you want to extend it, then the underwriting and application process must be started all over. This type of insurance is good if you need to cover something for a very short period of time; 0-12 months. Covering a short term loan is a common use for this type of policy. Annual Renewable Term coverage can be expensive compared to Level Term.

When most people think of term life insurance, they are thinking about Level Term. This type of Term coverage typically ranges in duration from 10-30 years. It is great way to protect your family in the event of premature death for longer periods of time. The death benefit on the term life insurance policy can be used to replace a lost source of income, cover college expenses, mortgages and other outstanding debts you may accumulate through the years. If you were to pass away during the term period, the death benefit can be used to cover those debts and not leave your family struggling to pay the bills.

While these definitions are pretty basic, they will tell you a lot about the term life insurance product you may need. What fits you the best? Give me a call at 1-800-651-1953 or email info@pivot.com. I am here to help you get the coverage you need today. Remember you can always visit our Life Insurance Tool Box to get a free term life insurance quote or assess your coverage needs.

About the author: Seth Gowdy is the Sales Manager for Pivot Insurance and holds multiple insurance and securities licenses. He has been part of the financial services industry for nearly 20 years. In his free time he enjoys being outdoors fishing, hiking, and geocaching with his wife and two children. Seth most enjoys helping clients with Pivot’s anonymous life insurance quote process and needs calculators. You can reach Seth at 1-800-651-1953 or SGowdy@pivot.com.