Term Life Insurance
Term life insurance is a type of life insurance policy that provides coverage for a specific period, or “term,” such as 10, 20, or 30 years. Unlike permanent life insurance, which lasts for the policyholder’s lifetime and can accumulate cash value, term life insurance has no cash value and is purely designed to pay a death benefit if the insured passes away within the specified term.
Purpose of Term Life Insurance
- Provides a tax-free death benefit to the designated beneficiary.
- Death benefit will help cover living expenses, debts, loss of income, and other financial obligations you left behind.
- Term insurance aligns with your financial responsibilities while you are working.
What Does Term Life Insurance Cover?
- Life insurance protection for 20 years.
- Up to $100,000 of coverage.
- Living benefits for Terminal Illnesses. Access 50% of your death benefit while you’re living if you are diagnosed with a terminal illness.
How it Works
- If the insured dies within the policy term, Transamerica pays the designated beneficiaries the death benefit.
- Death benefits are tax-free.
Benefits of Term Life Insurance
- Term life insurance is less expensive than other forms of life insurance.
- Higher death benefit amounts for your working years.
- Simple and straightforward, making it simple to understand.
Who Needs Term Life Insurance
- Families needing income replacement should you pass away unexpectedly.
- Financial obligations such as mortgage, rent, retirement funding, education, etc.
- Everyone who doesn’t want to leave a financial burden on their loved ones.
