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Harry Wilk

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Since 1991, Harry Wilk has provided professional and experienced advice to achieve a long record of exceptional results for his clients.

Sigma Financial Group
Term Life

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What is Term Life Insurance?
Term life is a type of life insurance with a limited coverage period. Once that period or "term" is up, it is up to the policy owner to decide whether to renew or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, which is intended to provide life-long protection.

Other characteristics of term insurance include:
  • Low Cost
  • No Cash Value
  • Usually Renewable
  • Sometimes convertible to permanent life insurance
Term life insurance policies provide a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period. However, the policy does not provide any returns beyond the death benefit (the amount of insurance purchased); the policy has no additional cash value, unlike permanent life insurance policies, which have a savings component, increasing the value of the policy and its eventual payout.

Because of this, term life insurance is also known as "pure life insurance": Its only purpose is to insure individuals against the loss of life, and all premiums paid are used to cover the cost of insurance protection.
Characteristics of Term Life Insurance
Premiums for term life insurance are based on a person's age, health and life expectancy, as determined by the insurer. If the person dies within the specified term, the insurer pays the face value of the policy; if the term expires before death, there is no payout. Policyholders may be able renew a term policy at its expiration, but their premiums will be based on their attained age.
Who Is Term Life Insurance Good For?
A popular time to take out a term life insurance policy, particularly one with a 20-year term, is upon having children. They are usually a good fit for younger people with families, just in case something happens to the primary earner. They are also well-suited to people who know for certain their need for life insurance coverage will be temporary in other words, they feel their surviving family members will no longer have a need for the extra protection life insurance provides or that they will have accumulated enough liquid assets to self-insure. If you only need insurance for 10 years, then buy term.

As you move through different phases of life buying a house, starting a family, opening a business, retirement the amount and kind of life insurance you need also changes. When you're young and need a lot of coverage to replace a loss of income for your dependents, term life insurance often makes the best sense (and in fact has become the default option for most insurance buyers, primarily because it is inexpensive and uncomplicated). As you accumulate assets and need coverage that will last for your lifetime, permanent life insurance may be the better option.
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Create your own Instant Term Life Quote.
PREVIOUS: Learn about
Universal Life Insurance.
NEXT: Learn about
Final Expense Insurance.

Sigma Financial Group  

Sigma Financial Group
1110 Pivot Rock Road
Eureka Springs, Arkansas 72632

For more information, please call or email us:
(479) 253-7343
(361) 442-6635- Cell
(479) 253-7661- Fax
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Sigma Financial Group

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