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Term Life Insurance: Everything You Need to Know

Term life insurance provides simple, affordable coverage for a set period, helping protect your family’s financial security when it matters most.

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PROTECTION FOR WHAT MATTERS MOST

Why Choose Term Life Insurance

Term life insurance offers affordable, straightforward protection for a set number of years - helping safeguard your family’s financial stability through life’s most important milestones.

 

Whether you’re buying a home, raising children, or building your career, term life coverage gives you peace of mind that your loved ones will be protected if the unexpected happens - all at a cost that fits your budget.

01

Simple + Affordable Coverage

Term life insurance offers straightforward protection with lower monthly premiums than permanent policies - making it one of the most affordable ways to protect your family’s financial security.

02

Protection When It Matters Most

Choose coverage for 10, 20, or 30 years - the years your loved ones rely on you most. Whether you’re raising children, paying off a mortgage, or building savings, your family stays protected if the unexpected happens.

03

Fixed Premiums That Fit Your Budget

Your premiums are guaranteed to stay the same for the entire term. No hidden fees or rising costs - just predictable, budget-friendly protection for the coverage period you choose.

04

Flexible Options for Every Stage of Life

When your term ends, you can renew, extend, or convert your policy into permanent life insurance - without starting from scratch. This gives you flexibility as your financial goals evolve.

What Is Term Life Insurance?

Term life insurance provides straightforward, affordable coverage for a specific number of years – known as the term. You choose both the coverage amount and term length (typically 10, 15, 20, or 30 years) to align with your family’s financial goals and key milestones.

If you pass away during that period, your beneficiaries receive a tax-free lump-sum payment, giving them the financial support they need to cover essential expenses such as housing, education, or daily living costs.

Term life insurance is designed to protect what matters most – your loved ones’ peace of mind and financial security – without unnecessary complexity or high premiums.

Key Benefits of Term Life Insurance

When you pass away, your designated beneficiaries receive a guaranteed payout to help cover final expenses, pay off debts, replace lost income, or provide an inheritance. As long as premiums are paid, this benefit is guaranteed.

  • Flexible Term Lengths: Choose from 10, 15, 20, 25, or 30 years of protection to match your needs.

  • Fixed Premiums: Enjoy predictable monthly payments that stay the same for your entire term.

  • Guaranteed Death Benefit: Provides your family with a tax-free payout if you pass away during the term.

  • Affordable Coverage: Typically costs less than permanent policies, making it ideal for families or first-time policyholders.

  • Quick, Hassle-Free Application: Get covered faster with simplified underwriting and no medical exam in most cases.

Types of Term Life Insurance Policies

Level Term

  • Premium: Stays the same throughout the term.
  • Death Benefit: Remains consistent from start to finish.

Renewable Term

  • Premium: May increase after renewal based on your age.
  • Death Benefit: Typically stays the same after renewal.

Convertible Term

  • Premium: Increases if converted to a permanent policy.

  • Death Benefit: Can stay the same or be adjusted upon conversion.

Decreasing Term

  • Premium: Usually stays the same.

  • Death Benefit: Gradually decreases over time (often matching a mortgage or loan balance).

Who Should Consider Term Life Insurance (and Who Might Not)

Term life insurance is an excellent choice for individuals who want straightforward, affordable protection during the years their loved ones depend on them most.

It’s ideal for:

  • Families with young children who rely on your income.

  • Homeowners with a mortgage or other long-term financial obligations.

  • Individuals in their prime earning years who want to secure financial stability for their spouse or dependents.

  • Business owners or professionals looking for a cost-effective way to protect against income loss or debt.

Because term life coverage lasts for a fixed number of years, it’s perfect for protecting against temporary financial responsibilities — like paying off a home, funding education, or covering household expenses through retirement.

However, if you’re looking for lifelong protection or want to build tax-advantaged cash value you can borrow from later, a Whole Life Insurance policy may be a better fit.

At B.B. Financial Group, we help you compare both options side-by-side to design a plan that fits your budget, goals, and stage of life.

Important to Know

Term life insurance policies do not build cash value and expire at the end of the selected term.
If you outlive your policy, coverage ends, and no payout is provided unless you renew or convert your policy to a permanent life insurance plan.

Renewal premiums are typically higher based on your age at that time, so it’s important to review your options early.
Our advisors can help you understand whether extending, converting, or layering policies makes the most sense for your long-term goals.

Explore Other Life Insurance

Whole Life Insurance

Lifelong protection with guaranteed growth and peace of mind for your family.

Learn More

Final Expense Insurance

Affordable coverage designed to ease the financial burden of end-of-life costs.

Learn More

Indexed Universal Life (IUL)

Flexible coverage that grows with the market. Protect your future and build wealth tax-free.

Learn More

Term Life Insurance: Pros and Cons

Every financial tool has its strengths and limitations and term life insurance is no different. Understanding both sides helps you make confident, informed decisions about protecting your family’s future.

Pros of Term Life Insurance

Affordable Protection: Term life is typically the most cost-effective form of coverage, allowing you to secure a high death benefit for a low monthly premium.

Customizable Terms: Choose how long you need coverage – 10, 15, 20, or 30 years – to match your family’s financial goals and responsibilities.

Simple and Predictable: Fixed premiums and a guaranteed death benefit make term life easy to understand and budget for.

Ideal for Key Life Stages: Provides coverage during your most important earning years — when your family depends on you most.

Cons of Term Life Insurance

Coverage Ends After the Term: Once the policy expires, protection stops unless you renew or convert it to a permanent plan.

No Cash Value Growth: Unlike whole life or IUL policies, term life doesn’t build equity or offer borrowing options.

Higher Renewal Costs: If you choose to renew after your term, your premiums may increase based on your age and health.

No Payout if You Outlive the Term: Term life is designed purely for protection – it pays a benefit only if the insured passes away during the coverage period.

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Ready to Protect What Matters Most?

Let’s explore how term life insurance can fit into your overall financial plan.
Our licensed advisors will help you understand your options.

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Frequently Asked Questions

Term life insurance provides financial protection for your loved ones if you pass away during the policy’s term. The payout (death benefit) can be used for mortgage payments, daily living expenses, education costs, or debt repayment – helping your family maintain stability when it matters most.

If the insured person passes away while the policy is active, the insurance company pays a tax-free lump-sum benefit to the designated beneficiaries. At B.B. Financial Group, our advisors help ensure your beneficiaries are properly listed and claims are processed quickly and smoothly.

When your policy reaches the end of its term, coverage stops. You can choose to renew your policy, convert it to a whole life plan, or let it expire if you no longer need coverage. Renewal premiums will likely be higher since they’re based on your age at the time of renewal.

Yes, many term life policies include a conversion option, allowing you to switch to a permanent policy like Whole Life Insurance without a new medical exam. This can be a great way to keep your coverage while adding cash value growth and lifelong protection.

No, term life insurance doesn’t build cash value, so there’s nothing to borrow or withdraw. It’s designed purely for affordable, time-limited protection. If you want access to your policy’s value while you’re alive, consider a Whole Life or IUL policy, which accumulates tax-advantaged cash value.

Standard term life policies don’t return your premiums when coverage ends. However, some insurers offer Return of Premium (ROP) policies that refund what you’ve paid if you outlive the term – though these typically cost more.

Yes, for most families, term life is the simplest and most affordable way to protect loved ones financially. It provides large coverage for a low premium, ideal for people in their prime earning years or with temporary obligations like mortgages or tuition.

Many term policies can be renewed at the end of the term – but keep in mind, rates increase with age. You can also apply for a new policy or convert to a permanent one. Our team can help you explore which option gives you the best long-term value.