What term life insurance is
Term life insurance covers you for a set period, the “term.” If you pass away during that time, the policy pays a death benefit to your beneficiaries. If you outlive the term, coverage ends and there is no payout. Because it covers a defined window and has no cash value, term is usually the lowest-cost way to buy a large amount of coverage.
Premiums on most level term policies are fixed for the length of the term, which makes them easy to budget.
Who it fits
- Parents of young children who want their income replaced until the kids are grown
- Homeowners who want to be sure the mortgage can be paid
- Business owners covering a loan or protecting a partner
- Anyone with a debt or responsibility that has an end date
How much coverage, and for how long?
Ask what your family would need if your paycheck stopped tomorrow. Add the mortgage balance, other debts, future education costs and the years of income you'd want to replace. Then choose a term that lasts until those needs shrink, such as when your youngest finishes school or the house is paid off. Some people “ladder” two policies with different lengths so coverage steps down as needs decrease.
How it works
You answer questions about your health, lifestyle and family history. Depending on age, health and the amount, some insurers can approve you without an exam, while others ask for a short one. Many term policies include or offer:
- A conversion option to switch to permanent coverage later without proving your health again, within the policy's time limits
- Riders such as an accelerated death benefit for terminal illness, waiver of premium or coverage for children
- The ability to renew after the level term ends, usually at much higher premiums
Buying coverage around a new home? Read Mortgage Protection vs. Term Life Insurance.
Why work with an independent broker
Insurers price the same person differently. Matt can compare term quotes and underwriting rules across several companies, which can matter if you have a health condition, take certain medications or have a hobby insurers ask about. There is no cost to talk and no pressure to buy.
Serving Mooresville and the Lake Norman area
Matt helps families and professionals in Mooresville and across Iredell County and the Lake Norman area. Much of the process can be handled by phone and email, so it fits around work and family. He's also licensed in 16 other states and Washington, DC.
Term life insurance is subject to underwriting and eligibility requirements. Terms, riders, conversion options and availability vary by insurer and state.