Term Life Insurance

Term Life Insurance policies covers you for a specific, predetermined amount of time only. Should you die during your policy's term, your beneficiaries will receive the payment - should the policy expire before you do, there is no pay out. 

Term life insurance policies are very popular among consumers because of their affordability and flexibility. With a term life insurance policy, you choose the amount and duration of your policy's coverage in order to get the best rate.

It is important to note that Term policies are only insurance; they have no cash value or added savings feature.

There are different types of Term Life Insurance for which you can receive a quote:

Level Term- Level Term policies provide a fixed amount of coverage with a fixed premium that last a fixed amount of time, usually in 5 to 10 year increments.

Common increments are as follows:

  • 10-year term
  • 15-year term
  • 20-year term
  • 25-year term
  • 30-year term
  • There are also policies that set the term to a specified age.

Level term is ideal for those who can’t afford permanent coverage, and are not sure they will ever want or need a permanent policy after the term duration expires.

Decreasing Term- This means the premiums remains fixed, but the amount of coverage decreases throughout the term. Usually the most affordable of the term policies if you want a longer duration, this type of term policy is good for those who want a really low rate and for it to remain fixed, but don’t mind their coverage decreasing as the term progresses.

Convertible Term- This means that you have the right to change to a permanent type of life insurance without a medical exam, although this will probably result in a higher rate. This is ideal for those who can’t afford a higher rate now, but don’t want the hassles that come along with the approval for a permanent policy when they are ready to convert down the road.

Renewable Term– This type of policy continues for a specified term, typically in one or five year increments. It can be renewed without the insured having to obtain a medical exam each year. This is a decent choice for someone who does not want to commit to a longer duration, but doesn’t want to get medical exams every time they do choose to extend it. However, although it is more flexible in terms of duration, the premiums for insurance with this feature are often significantly higher than for policies without it and generally require that you keep the policy in force to its term.

Term life insurance is designed to offer basic coverage for a specific number of years at a fairly low cost. This makes it an especially attractive option for people who need to protect their beneficiaries, but who don't have a lot of cash freed up afford something long term. However, if your goal is anything other than temporarily protecting loved ones against the financial hardship that would result from your death, you might want to look into a permanent policy for peace of mind.

It is also important to note that term premiums can vary by as much as 50% for the same coverage and options, so it pays to get quotes from as many reputable insurers as possible. This is where Greenway comes in. We specialize in getting these quotes for you so you don’t have to, and we do it for you for free! Click here to learn why you should trust us over other brokers.

Whole Life Insurance

Whole Life Insurance is different from Term life in that it provides coverage for the entirety of the insured's life as long as the policy is in force.

Cash Value:

Whole life insurance is also different because unlike Term Life, it provides a guaranteed cash value, almost like a 401k. Cash value is when part of each premium payment is applied to the policy's cash value account based on current industry interest rates, which grows on a tax-deferred basis.You can borrow against your cash value or surrender your policy to get the cash value in hard cash.

You can also opt to participate in the surplus of your insurance company and receive the dividends annually. Here, you have the choice to either get your dividends in cash, or let them accumulate interest. You may also use your dividends to reduce your policy's premiums, buy additional coverage or pay towards a new and improved policy. It is important to note that these guaranteed cash values are dependent on the specific terms of the policy.

Living Benefits:

Whole life policies also offer what's called "living benefits." These types of benefits include accelerated death benefits, which means you get half the death benefit paid up front if you come down with a dreaded disease (such as cancer). They come with Long Term care benefits where you can get 2% of the death benefits paid out monthly, which you can use to pay the nursing home. They also have Terminal Illness coverage so you can get the entire Death benefit paid up front so you can go on that dream vacation to fulfill your bucket wish list, and/or use funds to prepay funeral expenses to get better rates on services. 

Types of Whole Life Policies:

Final Expense/Burial Whole Life:

This type of Whole Life Policy is by far the most popular. People love this policy because it is the most cost effective long term policy available. Final Expense & Burial Policies are usually anywhere between 10,000 - 20,000 in coverage and are specifically taken out to cover the cost of any immediate expenses associated with ones departure such as funeral, burial or cremation and services. It is meant to cover the most certain and immediate expenses that come along when someone dies and unlike a term policy, it is a guaranteed benefit that does not expire after a set amount of time. Even these smaller whole life policies build cash value. Final Expense can cost more than a term policy, but a lot less than a larger cash value whole life or universal policy while still providing long term coverage, making it the most purchased policy on the market.

Larger/Cash Value Whole Life:

High Coverage Whole Life policies provide higher coverage amounts than Final Expense Whole Life. These policies range anywhere from 50,000 to...well pretty much the sky is the limit. It is said that the most expensive policy ever taken out was a record breaking $212 million.  Although these policies are more expensive, they are appealing because the insured gets more than just the standard costs to cover funeral expenses and also more cash value to use down the road when needed. The additional coverage can be used to take care of loved ones in many ways. To learn more about the various reasons this type of policy would be a great option please download our Free E-Book Here!

Additional Details:

  • Premiums are partially determined based on the age of the insured. The younger and healthier the insured is, the less expensive the annual premium.
  • Current federal income tax law allows for deferred tax advantages for some insurance policies.

While premiums for Whole life policies tend to be higher than Term Life policies, Whole life has more to offer in terms of benefits and coverage. it is the policy that meets in the middle and therefore appeals most to the average citizen. It is also much more convenient because once it is obtained, it never has to be renewed or applied for again, unlike Term Life. It is important to note though, if you decide you want to adjust your benefit, it will require applying for a new policy which could mean an increase in your premium if approved.

If you need more information about whole life insurance or still need clarification about whether you should select term or whole life insurance policy, please click here and complete the form on this website and a licensed agent will contact you. At Greenway Low Cost Life Options, we are an insurance service company that represents highly rated insurance companies. Our licensed life insurance agents listen to you, and then recommend appropriate life insurance coverage choices for you. Click here to see why you can trust us over others.

Universal Life Insurance

A universal life insurance policy works similarly to whole life insurance which is designed to cover you for a lifetime. It also offers cash value and living benefits. However, unlike whole life insurance, universal life makes it possible to adjust the benefits without having to apply for a new policy.

Coverage Flexibility:

Universal life policies offer more flexibility within the policy terms. You have the liberty to reduce or increase your death benefit and also to pay your premiums at any time and in any amount (subject to certain limits) after your first premium payment has been made.

Although you can also increase the face value of your insurance coverage, you will need to pass a medical examination to qualify for this benefit. Similarly, you may decrease your coverage to a minimum amount without surrendering your policy. However, surrender charges may be applied against the cash value of your policy.

Payment Flexibility:

You also have the opportunity to change the amount and frequency of premium payments. So, you can pay more towards your premiums or even pay in lump sum according to the specified limit in the policy.Doing this means the part of your premium minus the cost of insurance is put into an investment account and the interest therein is credited to your account. In this way, the interest grows on a tax-deferred basis, which increases your cash value. 

In case of a financial hitch, you can also reduce or stop your premiums and use your cash value to pay premiums. Nevertheless, there should be enough money accumulated in your cash value account to cover the premium payments. 

Universal life insurance may be the right choice for you if you need long-term flexibility should something should change down the road. As long as premiums are paid and kept current as requested by the policy, your beneficiaries will receive the death benefit.

There are many factors that will determine the cost of premium for this type of policy, but if you are relatively healthy and/or younger, or you are not concerned about cost and just want the best overall protection, then this could be the best option for you when considering all factors such as affordability, flexibility and lifelong protection.

Let Greenway Help You

In order to get the coverage that you need to protect your family, you need to be able to make important decisions and choices in order to be sure you are choosing the best policy.

Greenway understands this is an important decision that is not to be taken lightly, and we want to be able to assist you in making that decision. If you are ready to let us do that, please click here and fill out the form on the home page and a licensed health insurance agent will reach out to you quickly. If you are still unsure, please click here to learn more about us and why you can trust us. You can also click here in order to have any lingering questions you may have answered more thoroughly.

For anyone considering life Insurance, this is probably the most pondered question, and for darn good reason. Life Insurance is certainly not one size fits all. This is why there are different kinds, to cater to all different types of people, at all different stages of life. If you are unfamiliar with the various kinds or you simply need a refresher, please read below to get some detailed information. Education is the first step in making sure you make the right decision for you and your loved ones.


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