Term-Life Insurance Agent in Frederick Maryland
Term-Life Insurance provides the policyholder with insurance coverage for a specific term – usually 10, 20, or 30 years –and in the event of the policyholders’ death, the policy would pay the beneficiaries the face value of the policy. Are you looking for a term-life insurance agent in Frederick Maryland? The life insurance experts at Balderson Insurance can help you determine your best course of action whether or not term-life insurance is a good option for you. Contact us today at (301) 874-0772 for a free, no obligation consultation.
Unlike whole-life / universal-life, a term-life insurance policy does not accrue any cash value; meaning that it’s primary purpose is to pay out a death benefit.
Many people choose term-life insurance because it is generally much less costly than a whole-life / universal-life policy.
Term-life insurance can have a few additional provisions that provide additional value (at additional cost):
Renewable Option – This would allow the policyholder to renew the policy at the end of the term without requiring any additional medical exam. Additional costs usually apply to the premium and the renewal cost will be typically higher.
Convertible Option – This option allows the policyholder to convert their term-life insurance policy to a permanent (whole) life / universal-life insurance policy without any medical exam.
Return of Premium Option – In this type of term-life insurance policy, you are eligible to receive a portion of your life insurance premiums back, assuming you outlive the policy.
When to Get Life Insurance: One should acquire life insurance at as early an age as possible because insurance companies prefer to insure young, healthy people and reward them with lower cost premiums. The challenge with getting term insurance at too young of an age is that you will likely outlive it. Keep in mind that it’s estimated that fewer than 2% of term-life insurance policies ever pay a claim. Therefore, if you are young and healthy, it might be a better option to get a whole-life / universal-life insurance policy.