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Here are Some Things You Should Know

The more you know about term life, the better your buying decision will be. Here are some helpful facts you should know as you shop for plans.

  • It does not accumulate cash value over time. Unlike permanent life insurance, this type of plan does not accrue cash value over time. In other words, once your coverage period expires, your policy has no further value. If you are looking for a solution that doubles as an investment vehicle, you might look at permanent options instead of temporary ones.
  • Death benefits are usually received tax-free. Most quotes are on policies that will pay your beneficiaries a death benefit that is tax-free. That is, your loved ones will not have to pay income tax on the proceeds of your plan.
  • Premiums increase with age. Though term premiums are initially the lowest of all types of policies, the premiums on this type of plan will increase with age. This means that your safety net might become unaffordable later in life. You can switch to a permanent offering that has consistent premiums if your plan offers a conversion option.

For more information or answers to questions you may have, look through our frequently asked questions and the answers that we have given.

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  • It can fulfill specific business needs. Certain business owners might be especially interested in term life insurance quotes, as it can help them fulfill certain business needs. For example, a term life option could insure the life of a key employee until retirement in case he/she dies. The policy would then cover the losses the company would suffer as a result of the employee's death.
  • Your coverage does not last forever. As you shop for the right solution, keep in mind that one of the main disadvantages of such a product is that the coverage only lasts for a limited time. In other words, once the term period expires, your coverage ceases and your safety net has no further value unless you choose to renew with higher premiums.