New Jersey is an expensive state to live in. Term Life Insurance is cheap compared to the protection it gives. Just call us at 1-800-548-2329 for advice, comparisons, information, or life insurance quotes.
What is Term Life Insurance?
Term Insurance is often the least expensive way to buy life insurance. It does not give all the advantages of permanent insurance. But when you're young and on a tight budget, term life insurance can help you make sure you've protected your spouse and kids. It's an excellent way to pay off the mortgage, replace an income, put aside money for kids' education, or whatever else you want to make sure happens even if you are not there to do it.
Term Life Insurance provides protection for a specified period of time or "term", typically from one to 30 years. It pays a death benefit if you die during this term.
Some policies can be automatically renewed at the end of the coverage period (at a higher price), and some can be converted to permanent insurance without need for a medical exam.
If you would like to get a quote now, click here, enter whatever you can (including the security codes at the bottom of that page), and we'll help you get a quote to think about.
You probably need a term life insurance policy that has a "level premium" for the whole term. That means that the annual cost won't increase until the end of the term.
How much life insurance do you need?
If you would like to discuss this, call us at 1-800-548-2329.
To get a general idea, who are you trying to protect? How much do you contribute to them each year? For how many years should that continue if something happens to you?
That's the simplest way. For more accuracy you can add up your expenses in detail and use an estimate of inflation for the length of time necessary to protect your family, or business, or whatever you would like to protect.
Your income stream is your biggest asset. And you're worth a lot. If you were to earn $50,000 a year for the next 30 years, no inflation or raises, that's $1.5 Million.
How do you buy life insurance?
Ask for an application from somone who sells life insurance. Try us!
Answer some questions.
Take a brief physical exam.
Wait while the insurance company reviews your exam results, driving record, medical records, and your answers to their questions. (This part can take a while, especially if your doctor doesn't get right back to the insurance company.)
Sign for the policy once the company issues it; start paying for the policy. And that should be it for the rest of the "term" whether one year, ten, or even 30 years.
For your Life Insurance needs in New Jersey or New York, ask us for advice or explanations, or for a free quote. You can click here to start a quote, click the contact us tab at the top right of this page, or call GBW for Life Insurance at 1-800-548-2329.
There are several different types of term insurance you can consider:
Renewable Term Insurance.
These policies have a provision allowing you to renew coverage at the end of the term without having to show evidence of insurability. The company has to renew your policy even if your medical condition has deteriorated. However, the premium rate will rise with each renewal.
Convertible Term Insurance.
These policies allow you to convert your term coverage into a permanent policy without providing evidence of insurability. Many term policies have this built in. Once converted, the premiums for the permanent coverage will be higher than those of a term policy with the same death benefit. However, the permanent policy premiums will remain the same while the term premiums will rise. Convertible term life insurance can protect you by allowing you to change to permanent insurance later in life when you may have more money to protect with the advantages of permanent insurance, but may not have health as excellent as you did when you were young.
Level Term Insurance.
These policies provide a fixed premium for a certain number of years, usually 10 or 20 years, while the death benefit remains unchanged. The death benefit is the amount the life insurance company will pay, as stated in the policy, when the insured person dies. The advantage is that you lock in a certain rate for the period of the policy. The disadvantage is that the premiums will tend to cost more than the earlier years of the renewable policy, and when the level policy expires, premium rates will jump considerably if you want to renew with another level policy.
Decreasing Term Insurance.
The death benefit in this type of policy decreases over its term. For example, you might start with $100,000 of coverage and the amount of coverage decreases by $10,000 each year for 10 years. The premium usually remains the same over the term of the policy. This type of insurance allows you to pay the same premium for less insurance over time, rather than have your premium increase for the same amount of insurance. We're not big fans of this; it cuts the amount of insurance when you may be earning more and when you may have more trouble getting insurance.
Increasing Term Insurance.
This kind of policy starts at one level of death benefit which gradually increases over the life of the policy. You may start with a $100,000 policy and increase the death benefit $10,000 each year for 10 years. The premium will increase each year. This kind of policy may be appropriate if you see your insurance needs growing in coming years because, for example, you expect to have more children.
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