Life insurance plans don’t have to be expensive. Term life insurance is a popular choice for those looking to save money upfront. At Aflac, our plans are competitive and reliable. We’ll work with you to find the term length that makes the most sense.
Try our life insurance calculator to see how rates are impacted by age, lifestyle, medical history, and coverage goals.
What is Term Life Insurance?
Term life insurance provides coverage for a set period. This contrasts whole life insurance, which requires scheduled payments your entire life. Basic term life insurance lengths are 10, 20, or 30 years. Below are some of the main features of a term life insurance policy:
- You can choose which term length makes the most sense for your unique lifestyle.
- The premiums remain the same the entire length of your policy, unless you choose to change them.
- If the policyholder passes during the term, the beneficiary receives the death benefit.
- Term life insurance quotes are competitive and dependable.
Types of Term Life Insurance
Are you wondering, what does term life insurance mean for me? It depends on what you are looking for in a plan. There are a variety of term types to choose from:
- Fixed Term: Fixed term is the most popular choice. It’s the most basic version and lasts 10, 20, or 30 years long. The premiums remain static in this plan.
- Increasing Term: An increasing term life insurance policy allows you to scale up the value of your death benefit throughout the term. In this route, your premiums slightly increase over time. These types of policies tend to cost more, but they usually deliver a larger payout.
- Decreasing Term: On the other hand, decreasing term life insurance reduces the premium payments over time. This can result in a smaller death benefit. This insurance type makes sense for those who predict they will have fewer financial obligations as they age.
- Annual Renewable: Annual renewable life insurance provides coverage on a yearly basis. It must be renewed by the policy end date to continue coverage. The premiums usually increase each time the plan is renewed. This option is best for those in need of short-term coverage. This route can be more expensive, but there are usually less payments because the coverage time is shorter.
Many people also wonder how group term life insurance works. This type of plan functions similarly to direct term life insurance, but it’s purchased through your employer. It functions as a workplace plan and deems all employees eligible for coverage. Direct term life insurance allows the consumer to apply for a policy directly from an insurance company.
Most commonly, group term insurance is assigned to a company’s employees. However, this type of coverage can also be used for families. You can get a term life insurance quote from Aflac to see which plan matches your needs and budget best.
