Term Life Insurance

Term life insurance is a simple, affordable way to secure your family’s financial future in after your death. Navigating your term life insurance options can be tricky, but we’re here to help. Contact Arches Insurance today to learn more about your options.

What Are Term Life Insurance Policies?

A term life insurance policy provides coverage for a specific period, usually ranging from five to 30 years. Unlike permanent life insurance, which offers lifelong coverage, term life insurance provides financial protection for a particular duration. Its primary objective is to offer a death benefit to beneficiaries in case the insured dies within the specified term.

How Does Term Life Insurance Work?

Term life insurance operates on a simple premise: An insured (the policyholder) pays regular premiums to the insurance company in exchange for coverage for a predetermined term. If the insured dies during the policy term, the designated beneficiaries receive the death benefit payout. However, if the insured lives past the coverage period, the policy ends, and no benefits are paid.

One of the advantages of term life insurance is its affordability, especially for young and healthy individuals. Some term life insurance policies allow the insured to change the coverage to permanent life insurance when the term period ends. This gives flexibility to the policyholder if their needs change over time.

What Are the Differences Between Term Life Insurance and Permanent Life Insurance?

Term life insurance differs significantly from permanent life insurance in the following ways:

• Term life insurance offers coverage for a specific period, whereas permanent life insurance provides coverage for the duration of the insured’s life.
• Permanent life insurance has a cash value feature that allows policyholders to build savings over time through investment growth. Term life does not have cash value.
• Due to its lifelong coverage and cash value accumulation, permanent life insurance tends to have higher premiums than term life insurance.

Term life insurance is an economical option for those looking to financially safeguard their loved ones for a specific period. Working with an insurance agent can help you understand its features and the additional options available.

Get Term Life Insurance Today

At Arches Insurance, we are committed to helping you get the tailored term life insurance policy that suits you best. Contact us today to get started or for your free quote.