What Is term life insurance?
Term life insurance is a life insurance policy that pays cash benefits to help your loved ones in the event of your death.
Term life insurance policies from Golden Rule Insurance Company also feature an optional Critical Illness Benefit1 that pays cash benefits upon diagnosis of a qualifying illness or death.
A term life insurance policy features advantages like:
Lump-sum benefit paid upon your death
Multiple terms and benefit levels to choose from
No medical exam required2
Eligible for coverage until age 75
How does term life insurance work?
Term life insurance pays your designated beneficiary(ies) a lump sum if you die within the selected policy term. If you opt for the optional Critical Illness rider and are diagnosed with a qualifying illness, you will receive a cash benefit according to the terms of your policy.
The money is paid to you and can be used as you wish. The benefit amount received from the Critical Illness rider is subtracted from the benefit amount of your term life insurance policy.
Who benefits from term life insurance policies?
Because term life policies are only active for a set amount of years, some people benefit from these policies more than others. Term life insurance may be a good option if you are:
- Raising children
- Paying off a mortgage
- Earning a majority of the household income
Term vs. whole life insurance
Term life insurance differs from whole life insurance. A term life policy has a death benefit, meaning the benefit is paid when the insured dies. A term life insurance policy has a set duration on the coverage period, after which the coverage expires (or can be continued at a higher rate).
In contrast, whole life insurance plans have living benefits and often feature savings components that build up over time. As the name implies, permanent or whole life insurance plans extend until the policy owner dies or reaches 100 years of age.