Term life insurance is the simplest and most affordable coverage option for many families. Despite the fact that this policy does expire, term life insurance can provide a cost-effective way for people to protect those that rely on them while they have certain financial obligations.
What is Term Life Insurance?
Term life insurance guarantees financial protection for your family if you were to pass away during your policy’s term. These policies are crucial and provide the coverage you need, but only when you need it. Terms are usually between 10 and 30 years and if you pass away during this period, the insurance company will provide a tax-free sum of money to those that rely on you. These types of policies help ensure that if tragedy strikes, your children and spouse are financially supported, your mortgage or debt are paid off, and even a college fund is provided for your children.
Do I Need Term Life Insurance?
If someone relies on you or would experience financial hardship if you were to pass away, then you need life insurance. Term life insurance can be the best option for most families because it is relatively inexpensive, provides coverage while you have certain financial responsibilities and can provide millions of dollars in coverage. If you have young children, a mortgage/debt, or a spouse that depends on your income, a term life insurance policy is a necessity.
Read more about the types of people who need life insurance here.
How Much Does Term Life Insurance Cost?
Since term life insurance only provides coverage for a set period of time and not the rest of your life, it costs significantly less than permanent life insurance.
If you are a healthy 35 year old male, you can get $1,000,000 of coverage for as little as $34 per month

If you are a healthy 35 year old female, rates can be as low as $29 per month for $1,000,000 in coverage

As you can see, term life insurance can provide your family with a ton of coverage and very low monthly premiums. However, your specific rates can depend on a variety of factors including:
Your Age:
Every year that you wait to purchase a policy, the more it will cost when you actually get started. This rate can go up as much as 8-10% per year that you wait.
Your Health:
Life Insurance Rates are all about statistics. If you are in great health, the lower the statistical chance that you will pass away and therefore a lower rate!
Your Gender:
The average mortality age for men is 77 while the average age for women is 81. Therefore men are more likely to pay more for life insurance
Your Activities:
If you engage in hazardous activities such as scuba diving, sky diving, or piloting aircraft, your life insurance rates may be higher
Coverage Amount:
The more coverage your policy provides, the more money it will cost.
Policy Term:
If you have a longer policy term, you will pay more for the policy each month
Riders:
These are additions that can be placed on a term policy and provide extra coverage if your children pass away, access to your death benefit if you are diagnosed with a terminal illness or even a return of all the premiums you have paid if the policy expires before you die. These riders, however come at an additional cost and can increase your monthly payment.
How Much Term Life Insurance Do I Need?
The optimal amount of coverage will take into account all of your financial obligations and your specific circumstances. Here are some things to look at when deciding how much coverage you need:
Your Income:
You want to ensure that your income will be replaced and your family will be able to continue the lifestyle that you have provided them. If they need $3,000 per month for 20 years, make sure you have at least $720,000 in coverage.
Your Mortgage and Debt:
Term life insurance can be a great way to ensure that your mortgage/debt does not become a financial burden to your family or dependents.
Number of Financial Dependents:
Although they are little blessings, children are not cheap. The average child can cost $16,000 per year to raise and nurture. Ensure that you have enough coverage to continue to nurture these children until they are financially self-sufficient.
College Fund:
Life Insurance can be a great way to provide funding for the most important educational step your children will make. If you want to provide an adequate college fund, ensure that you have at least $50,000 in coverage per child.
Funeral Expenses:
The average funeral can cost between $5,000 and $20,000. Your family will already have the emotional burden from losing you. Don’t cause them to have a financial burden as well.
In general, your term life insurance policy should be enough to cover any financial burdens that may be left behind and should last long enough to ensure that your debts will be paid off and your dependents will be financially supported.
Read more about how much life insurance coverage you should have here.
What Are the Different Types of Term Life Insurance?
Term life insurance is by far the simplest and most straightforward type of life insurance protection for your family. However, that does not mean that you do not have multiple options to choose from. These include:
Return of Premium Term Life Insurance:
This type of life insurance provides a return of all of the monthly payments you have made throughout the life of the policy if you don’t pass away during the policy term. This creates a win-win! If you pass away during the policy, your family gets the death benefit. If you don’t, you get your money back!
No Medical Exam Term Life Insurance:
This type of term policy does not require you to complete a medical exam or lab draw and still get the coverage your family needs. Say goodbye to needles and nurses and say hello to life insurance coverage in seconds!
Instant Issue Term Life Insurance:
The underwriting process for term life insurance can take between 4-6 weeks. The healthier you are the faster it goes. However, if you need life insurance coverage immediately, there are options available to have instant coverage!
Mortgage Protection Term Life Insurance:
This type of policy provides specific coverage that pays off your mortgage if you were to pass away. Although it is a step in the right direction, this type of policy may not provide enough protection to support your family as it only pays off your current loan amount and not any other expenses your family may incur as a result of your passing.
What Happens After My Term Policy Expires?
Once your term life insurance policy expires, depending on the type of policy, you may have a few different options:
Let It Cancel:
If you no longer need the coverage and don’t have the same financial obligations as when the policy started you can just let it cancel. Why would you need life insurance if your mortgage/debt is paid off, your kids are out the house, and you have enough in retirement or savings to provide for your spouse and final expenses?
Renew the Term:
If you still require coverage after your term policy has expired you can renew the term and essentially purchase a new term policy. However, this new policy may come at a much higher cost due to a change in age and health.
Convert to Permanent:
Many term policies have the option to convert your term life insurance into permanent life insurance once the policy expires. With this option you will not have to go through underwriting or medical exam again and you will now have coverage for the rest of your life. However, this option will increase your monthly premium payments significantly and can cost anywhere from five to fifteen times more.
How Do I Get Term Life Insurance?
Step 1: Get A Quote
The first step to obtaining term life insurance is to get a quote. It is best to compare rates from all of the top rated insurance companies in the industry to ensure you are paying the best price for the most amount of coverage. However, not every policy is the same. Ensure that you are getting coverage from a reputable company with a long history of financial stability. No one wants to own a life insurance policy that may not pay out if they pass away. At Metcalf Financial, we are your one stop shop to compare life insurance rates from 80+ different carriers!
Step 2: Complete the Application
Every insurance company has a specific application involving various health and lifestyle questions. Once you have found a company and rate that work for your budget, the next step is to submit an application. This step can be difficult to navigate and require the help of a professional. At Metcalf Financial, we handle the entire application process for you in just a 10 minute phone call.
Step 3: Complete the Requirements
If your term life insurance policy requires a medical exam, labs or even a phone interview. The next step would be to complete these requirements. At Metcalf Financial, we don’t leave you high and dry. Once you have submitted your application, we will guide you and keep you updated on the requirements necessary to obtain the coverage you need for your family. We will even provide helpful tips and tricks to ensure you get the best possible results on your medical exam and labs.
Step 4: Wait For the Policy To Be Approved
Once you have completed the requirements for your term life insurance policy, go back to your life and enjoy yourself. At Metcalf Financial, we will handle everything else for you and keep you updated weekly on the status of your term life insurance application.
Step 5: Sign Your Application and Pay Your First Premium
Once your term life insurance application has been approved, you just have one final step! All you have to do is sign the final policy documents and submit your first premium payment. We will make this part super simple and we even provide the option to sign your documents directly from your smartphone!
The Best Way To Get The Right Term Life Insurance
The best way to get the right term life insurance policy for your unique situation is to work with a professional who can help guide you to the right coverage amount, policy term, and price for your unique situation. At Metcalf Financial, we will guide you from A to Z through the entire life insurance process and ensure you get the best priced policy in the industry with an A rated carrier or better, GUARANTEED!
Let us help you protect your family by:
Filling out our instant quoting tool to see your life insurance rates immediately?
Or giving us a call at (928) 514-6150