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Term Life Insurance
The coverage you need, when you need it.
An affordable, convenient option for many families.
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What is term life insurance and how does it work?
What does term life insurance mean? Term life insurance is the most popular life insurance on the market. A blend of level coverage and lower, guaranteed fixed premiums makes it a smart value.
How does term life insurance work? With term life, your policy is in effect for a set length of time. If you die during that time, your beneficiary receives a tax-free cash payout. If the term expires or you stop paying your premium, the coverage stops.
What Are Common Term Lengths?
Common term lengths are 10, 15, 20, and 30 years. Because there is a limited period of coverage, premiums are often considerably lower than permanent life insurance. You can renew some term policies after the term is up, but your premiums could increase significantly as you get older. That’s why it’s important to select the right length of time for your coverage. Your eFinancial agent can offer term life insurance policy quotes and guidance to help you make that choice.
What Do Term Policies Offer?
Term policies offer a guaranteed, tax-free death benefit. You decide the amount of coverage, and it is guaranteed to stay the same during the policy term. As you think about coverage, you’ll want to consider your immediate lost income and future earnings. eFinancial can help you select a coverage amount that offers protection for everyday expenses and critical milestones. Paying off your mortgage, sending your young children to college in the future, or ensuring quality of life when your partner or spouse retires all matter to you. They matter to us, too.
What are the benefits of term life insurance?
Guaranteed protection
Guaranteed protection
Affordable premiums that won't change
Affordable premiums that won't change
Tax-free death benefit
Tax-free death benefit
Short- or long-term flexibility
Short- or long-term flexibility
Simplicity for the first-time buyer
Simplicity for the first-time buyer
How much term life insurance do I need?
Each person’s life insurance needs and circumstances are unique. It’s important to consider your specific situation to decide on a term life policy that best suits you.
To determine the best amount of coverage for you, our term life insurance calculator can be a helpful starting point. Keep the following considerations in mind:
- Your age and how many beneficiaries you have — such as a spouse or children — who rely on you for their financial well-being
- Your annual income, as well as how many years your family will need coverage
- Any outstanding debts — such as mortgages and credit card debts — that would be passed on to your loved ones after your death
- Additional expenses such as the cost of a funeral, the money needed to send your children to college, or to pay for your own student debt
- Your total savings including stocks, mutual funds and other liquid assets
- How much of a financial cushion your loved ones will need to enjoy their current quality of life
Comparing term life vs. permanent life
insuranceTerm life | Permanent life | |
---|---|---|
Length of Coverage | Choose the term that works for you (10, 15, 20, 30 years) | Lasts your lifetime—as long as you continue your payments |
Premium | Typically the most affordable life insurance | More expensive than term for same coverage amount |
Medical Exam | Options to waive exam | Typically required |
Cash Value | None | Policy may build cash value on a tax-deferred basis |
Length of Coverage
Term life
Choose the term that works for you (10, 15, 20, 30 years)
Permanent life
Lasts your lifetime—as long as you continue your payments
Premium
Term life
Typically the most affordable life insurance
Permanent life
More expensive than term for same coverage amount
Medical Exam
Term life
Options to waive exam
Permanent life
Typically required
Cash Value
Term life
None
Permanent life
Policy may build cash value on a tax-deferred basis
How to convert term life policies to permanent policies
In some cases, you can convert your term life policy into a permanent life policy before your term expires. Converting your policy allows you to extend your coverage without having to go through a medical exam or the underwriting process.
Conversion can be the right choice if you still need life insurance to:
- support your partner or other family members financially
- cover outstanding debts
- give your loved ones a way to pay your final expenses
- leave a legacy for your family
Permanent life insurance lasts for your entire life, so converting a term policy can help you rest easier that your family is covered for good. Keep in mind that permanent coverage costs more than term, so your premiums will likely go up when you convert.
Get in touch with an eFinancial agent to learn about your policy’s conversion options or to start the process.
Term life insurance policies through eFinancial
With eFinancial, you’ll have access to term life insurance products from top companies. We make purchasing term life simple and fast. From quote to policy issuance, we can get most people coverage on a single call.
Every family has unique circumstances. You may want specific features, like a policy that renews or converts to a permanent life insurance policy. Many products, including term life policies, can include riders. A rider amends or adds to a policy, customizing it to your specific needs.
Because we get to know you and your needs, we tailor recommendations and guide you every step of the way. If your policy requires a medical exam, we help manage scheduling that as well. eFinancial is committed to helping everyday families find the term life insurance that fits their needs. We look forward to helping your family.