What Is Term?

Protection and Peace of Mind at an Affordable Price for Limited Periods of Time
As with any type of life insurance, term insurance can protect your family, estate, and business interests. Term insurance is typically used to provide protection for limited periods of time, in contrast to permanent insurance (whole life and universal life), which is designed to cover a person’s entire life. You can also use term insurance to supplement your existing coverage when you have additional financial responsibilities for a limited period of time, such as a mortgage or college expenses.

What is term life insurance?
Term insurance is temporary, affordable life insurance. It is purchased at a low cost for a specified period of time, and rates are guaranteed for the entire period. You typically pay a fixed premium during the specified length of time to guarantee a death benefit for your beneficiary. If you die within the term period, a death benefit is paid to your beneficiary, usually free of income taxes, as long as the premium payments are up-to-date and the policy is active. Beneficial Term is available for periods of 1, 5, 10, 15, 20, and 30 years. Beneficial Financial Group offers some of the lowest term rates in the industry.

Once the term period expires, you can continue your term coverage to age 95. You can also convert it to permanent insurance; the conversion time will depend on policy provisions. Both options will typically result in higher premiums but will not require having a medical exam or providing other information about your health. Renewal premiums generally increase with age and could become unaffordable later in life. Beneficial Term renewal premiums are guaranteed not to exceed a maximum amount for your age. Ask your Beneficial Financial Group financial professional what the premiums will be if you continue to renew the policy. Also ask if you lose the right to renew the policy at some age.

How does term insurance differ from permanent insurance (whole life and universal life)?

• Coverage period. Term provides protection for a limited period; permanent life is designed to protect for your entire life. Term protection can useful for known periods of time—such as to protect a short-term need like paying off a mortgage, loan, or business debt, or to provide a death benefit during peak earning years.
  
  
• Cash-value accumulation. Term builds no cash value; permanent life builds cash value that you can use as a cash-accumulation vehicle for long-term goals like retirement or for a child's college education. Cash-value growth in permanent life insurance policies is generally tax-deferred, meaning that you pay no taxes on any earnings in the cash value policy so long as the policy remains in force and no withdrawals are made. At the time funds are needed, you can borrow against the accumulated cash value of a permanent life insurance policy or withdraw up to the amount of the premiums paid. Money can be taken out of the policy via loans without having to pay taxes, since policy loans are generally not considered taxable income, and withdrawals generally can be taken up to the amount of premiums paid without being taxed. Withdrawals in excess of premiums paid are taxable. It is important to note that loans, withdrawals, and any unpaid loan interest can reduce the death benefit.
  
  
• Cost. Term costs less initially than permanent insurance, so you can purchase a given face amount of term coverage at a lower cost than if you purchased the same amount of permanent life insurance. Although permanent insurance is initially more expensive than term insurance, over time the permanent insurance is typically more economical since permanent premiums do not increase with age. Also, if you cancel a permanent life insurance policy, you receive the accumulated cash value. Surrender charges and taxes may apply.
  

Beneficial Term insurance includes the no-cost Accelerated Benefit for Terminal Illness.
All term life policies include this no-cost provision that allows up to 80 percent of the death benefit to be paid to the policyowner upon satisfactory evidence that the insured is terminally ill and likely to die within six months. Six other riders are available with Beneficial Term for an additional charge (see Riders and Benefits).

How much life insurance do I need?
How much life insurance you need usually depends on several factors. You can use our financial calculators to get a general idea of how much you may need. If you want a price quote, click on the link below. A Beneficial financial professional can help you analyze your financial situation and provide you with personalized options and solutions to help you reach your financial goals, including helping you determine how much coverage you may need.

All products not available in all states.

Beneficial Term form: 045-T39-74. Accelerated Benefit for Terminal Illness form: B10. Fixed life products are offered by Beneficial Life Insurance Company, 150 Social Hall Ave., P.O. Box 45654, Salt Lake City, Utah 84145-0654, (801) 933-1100. These products are not available in all states. Beneficial Financial Group is a marketing name for Beneficial Life Insurance Company, its affiliated companies, and sales representatives. The policy contains the actual governing contractual provisions. Guarantees are subject to the claims-paying ability of the insurer. Beneficial Financial Group and its respective agents, representatives, and/or advisors, do not offer tax or legal advice. Please consult your attorney, accountant, or tax advisor about specific points of interest to you.