Term Life Insurance in Providence, Rhode Island
Term life insurance is designed to provide coverage for a specific time or term, typically ranging from 5 to 30 years. Unlike some permanent life insurance policies, term life insurance does not build cash value over time. It offers a death benefit payout to the policy‘s beneficiaries if the insured person passes away during the policy term.
Contact Gilbane Insurance in Providence, Rhode Island, to explore your life insurance options and get a personalized quote.
How Term Life Insurance Works
Term life insurance is designed to offer financial protection to the insured person‘s designated beneficiaries in the event of the policyholder’s death during the policy period.
The policyholder selects the desired term length based on their needs and circumstances. They also choose the coverage amount, representing the death benefit to be paid to their beneficiaries.
The policyholder pays regular premiums throughout the policy term to keep the coverage in force. Premiums are typically based on factors such as the insured person‘s age, health, lifestyle and coverage amount.
Beneficiaries must file a claim for the death benefit if the insured person passes away during the policy term. Beneficiaries can use this lump sum payment for any reason, including mortgage payments, outstanding debts, living expenses, education costs or funeral expenses.
Coverage ends if the insured survives the policy term, and no death benefit is paid. The policyholder may have the option to renew the policy, convert it to a permanent life insurance policy or let it expire, depending on the insurer and policy.
Types of Term Life Insurance
There are different types of term life insurance policies, including the following:
- Level-term life insurance offers a fixed death benefit and premium for the duration of the chosen term. Level-term policies can be a good fit for those seeking coverage for a specific period, such as until their mortgage is paid off or until their children reach adulthood.
- Decreasing-term life insurance has a death benefit that decreases gradually over time while the premium remains constant throughout the term. This type of policy is often utilized to cover a specific financial obligation that decreases over time, such as a mortgage. Since the death benefit decreases, this type of insurance typically has lower premium costs.
- Renewable-term life insurance allows the policyholder to renew the policy at the end of the initial term without undergoing a medical exam or providing evidence of insurability. Renewal premiums are typically higher than the original premiums. Some insurers may allow renewals only up to a certain age, such as 65 or 70.
How to Get Life Insurance
Your decision to buy a term policy should be guided by your specific situation and what matters to you.
If you need term life insurance, we’re here to help. Give Gilbane Insurance Agency a call to get started.
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