When shopping for life insurance coverage, it is important to purchase the correct amount of protection in order to ensure that your loved ones and survivors are not left with financial hardship in the event that they must pay for final expenses, estate taxes, and / or ongoing income.
It is also essential that you purchase the right type of life insurance coverage. Although life insurance pays out a death benefit upon an insured’s passing, not all policies will work in the same manner.
Types of Life Insurance Coverage
Today, there are two primary types of life insurance that are available in the market. These include term and permanent. Although both provide death benefit protection to a named beneficiary on the policy – each works in a very different manner.
Term Life Insurance Policies
Term life insurance policies are oftentimes said to be the most basic type of coverage that there are. This is because, with term, you get just pure death benefit coverage without any cash value or investment build up. Because of this, term life insurance is usually very economical in terms of its premium cost.
Just as its name implies, a term life insurance policy will last for a certain amount of time – or term. Typically, this will be for five years, ten years, 15 years, 20 years, 25 years, or even 30 years. Once the period of time has elapsed on a term life insurance policy, the plan will expire. At that point, if the insured wishes to continue having coverage, then he or she will either need to reapply for a plan, or convert over to another life insurance policy.
Policies such as the 25 year term or the 30 year term plan are oftentimes used for those individuals who have longer term coverage needs, but who do not necessarily need or want the cash value build up that a permanent life insurance policy can provide. These can be used in paying off a mortgage or other longer term need should the insured pass away while there is still a balance.
In some cases, a term life insurance policy will have what is called a conversion feature. Here, the policy can be converted over to a permanent life insurance policy – usually without the insured having to prove his or her evidence of insurability.
While term life insurance policies are usually less expensive when an applicant is young and healthy, they can become quite expensive if applying at an older age. Therefore, it is important for individuals to carefully shop around if considering a term life insurance policy at an older age.
There are a variety of different riders that can be added to a term life insurance policy that can help to enhance a policy holder’s coverage. Some of these can include:
- Waiver of Premium Rider – With this rider, should the insured become disabled, the premium that is due on the policy will be waived during the time of the disability once an elimination period has been met.
- Disability Income Rider – With the disability income rider, the insured can collect a regular income should he or she become totally disabled and unable to work. It is specified in the policy home much income will be paid, and for how long.
- Guaranteed Insurability Rider – With this rider, the insured may purchase additional life insurance coverage at a time in the future without having to undergo a medical examination or provide any evidence of insurability.
- Term Conversion Rider – With the term conversion rider, an insured may convert his or her term life insurance policy over to a permanent life policy without having to provide any evidence of their insurability. Typically, there is a deadline as to when the insured must do so. Otherwise, the rider will expire.
- Accelerated Death Benefit Rider – With this rider, should the insured become terminally ill and only have a short life expectancy (for instance, one year), then he or she will be able to access a percentage of the death benefit to use for anything they need, such as paying for medical bills or living expenses.
- Child Protection Rider – Even though nobody wants to think about it, sometimes the unthinkable can and does occur. If the death of a child occurs, this rider will pay a certain amount for his or her final expenses. It works like a standard burial insurance policy but much less expensive because of it being a rider.
- Critical Illness Rider – With this rider, the insurance company will pay out a lump sum amount if the insured becomes diagnosed with a covered critical illness that is specified in the policy. These typically will include cancer, stroke, heart attack, and kidney failure. The money can be used for medical expenses or any other need that the insured chooses.
- Accidental Death Benefit Rider – With the accidental death benefit rider, an additional amount of benefit is paid out if the insured dies as the result of an accident. This rider will also pay a benefit if the insured loses a limb or their eyesight in an accident.
Permanent Life Insurance Policies
A permanent life insurance policy will offer both a death benefit, as well as a cash value component. Unlike a term life insurance policy that has a set time limit on the policy such as 20 or 25 years, a permanent life insurance policy will last throughout the entire lifetime of the policyholder – provided that the premium continues to be paid.
In addition, the amount of the premium on a permanent life insurance plan will typically be guaranteed throughout the entire lifetime of the policy. Therefore, for someone who is on a fixed budget, a permanent life insurance policy may be a good option – even though these policies will oftentimes start out with a higher premium cost than a comparable term insurance policy with the same amount of death benefit.
The cash that is in the cash value component of a permanent life insurance policy will be allowed to grow on a tax deferred basis. This means that it will not be taxed on the growth of the funds unless or until it is withdrawn. This can allow the funds to grow and compound exponentially over time.
The policyholder is allowed to borrow or to withdraw the funds that are in the cash value for any need that he or she sees fit. This can include paying off debts, paying for a child or a grandchild’s college tuition, or even taking a nice vacation – and, the money is not required to be paid back. Any amount of an unpaid cash value balance, however, will be charged against the death benefit that is paid out to the policy’s beneficiary at the time of the insured’s death. Therefore, if the beneficiary is counting on a certain amount of money for paying off bills of the insured, it will be important to repay a cash value loan or withdrawal as soon as possible.
There are many different types of permanent life insurance policies. These can include whole life, universal life, variable life, variable universal life, and a newer type of policy, indexed universal life insurance.
How and Where to Get the Best Quotes on 25 Year Term Life Insurance Coverage
When shopping for life insurance quotes on 25-year term policies, it is typically best to work with a company or an agency that has access to more than just one life insurance carrier. This is so that you can more directly compare the policies, the benefits, and the premium prices of multiple carriers – and then to decide which of these will be the best for you and your situation and needs.
If you are in the market for 25-year term life insurance coverage, we can help. We work with many of the best life insurance carriers in the marketplace today, and we can assist you with obtaining all of the pertinent information that you need for making a more informed buying decision. We can do so for you quickly, easily, and conveniently – all from your home computer, and without the need to meet in person with an insurance agent. When you are ready to begin the life insurance comparison process, all you need to do is just simply <Click Here Now>.
Should you determine that you have any additional questions regarding 25-year term life insurance coverage, our experts can assist you with any concerns in order to ensure that you are well prepared prior to moving forward. We can be reached directly via phone, toll-free, by calling 877-235-9299.
We understand that purchasing life insurance can seem a bit overwhelming. There are so many variables to keep in mind – and you want to be sure that you are buying the proper coverage for the needs of you and your loved ones. Before moving forward, know that you have an ally on your side. We can help you with important decisions such as how much coverage you need, and which of the many carriers in the marketplace will fit your needs the best. So, contact us today – we’re here to help.