Life insurance plays a central role in family financial planning. Internal Revenue Code has favorable rules for life insurance. Life insurance death benefits are not taxable income for any beneficiary.
Term life insurance is pure insurance with no investment and accumulation element. The death benefit under a term policy normally is level, but can also be increasing or decreasing, depending on the needs and financial situation of the insured.
The term may be specified as a period of time from the inception date (such as one year, five years, 10 years, 20 years, or 30 years), or as a period of time ending at a specific age (such as age 65). If the insured lives beyond the termperiod, the policy expires and no benefits are payable.
Term life insurance can come with various options such as renewable policy, conversion privilege, Return of Premium (ROP). Return of Premium (ROP) is a relatively new product, where the insured get the entire paid premium back at the end of the term.
Term insurance has many practical applications for covering insurance needs and it may be combined with other elements of a person's overall financial plan. Term insurance is temporary life insurance; the use of term insurance should be related to needs that are also temporary. The basic guideline is to cover temporary needs with term life insurance and permanent needs with permanent life insurance.
We have access to all of the major life insurance carriers. Please contact us to find the right policy for you and your family.