Term Life InsuranceAffordable and straightforward protection for your family.
Term Life Insurance
Term life insurance is affordable and straightforward. That’s why it’s the right choice for most life insurance shoppers.
Getting an honest and local agent who understands the Omaha area will save you time and money. Don’t fret over having enough coverage or paying too much in monthly premiums. We streamline your insurance portfolio to give you back your time and take away your stress.
What is term life insurance?
Life insurance is a good idea when you have a lot of financial obligations – i.e. kids, a mortgage, and other debt. Policygenius makes it easy to compare term life insurance policies to find one that covers all your needs. Term life insurance is particularly worth it because it’s the most affordable type of life insurance available that provides a tax-free lump sum of money for a financial safety net.
Term life insurance, also known as pure life insurance, is life insurance that guarantees payment of a stated death benefit during a specified term. Once the term expires, the policyholder can either renew it for another term, convert the policy to permanent coverage, or allow the policy to terminate.
There are three components
of Term Life Insurance
The death benefit is a lump sum of cash paid out by the life insurance company when you die. If you’ve ever heard someone say, “I took out a one million dollar life insurance policy,” that one million dollars is the death benefit.
The beneficiary is the person or organization that will receive the death benefit. The beneficiary doesn’t need to be a family member or even a human being—it can be a trust fund, or a non-profit organization, or a business partner. You can have multiple beneficiaries who split the death benefit, and you should always have a backup beneficiary in case the primary beneficiary isn’t able to accept the death benefit for some reason.
The term is how long the policy is active for. It’s called “term” because the policy lasts a set amount of time and then expires, after which you will no longer be covered by it. You’ll have to buy a new policy or renew the old one before it expires if you want to remain covered after the initial term.
The Three Types of Term Life Insurance
These provide coverage for a specified period ranging from 10 to 30 years. Both the death benefit and premium are fixed. Because actuaries must account for the increasing costs of insurance over the life of the policy’s effectiveness, the premium is comparatively higher than yearly renewable term life insurance.
Yearly Renewable Term
(YRT) policies have no specified term but are renewable every year without requiring evidence of insurability each year. Early on, premiums are low, but as the insured ages, premiums increase. Although there is no specified term, premiums can become prohibitively expensive as individuals age, making the policy an unattractive choice for many.
These have a death benefit that declines each year according to a predetermined schedule. The policyholder pays a fixed, level premium for the duration of the policy. Decreasing term policies are often used in concert with a mortgage to match the coverage with the declining principal of the home loan.
Get In Touch
Hi! I’m Christine Flaxbeard and I’ve dedicated my life to three things: Healthcare, Childcare and Helping out Fellow Nebraskans.
Christine Flaxbeard (402) 616-7172