Term Life Insurance

Understanding Term Life Insurance

Term life insurance is a form of pure life insurance that pays the beneficiary a specific amount of money if the insured dies while covered. Term life insurance offers coverage for only a limited period of time. During this period, anywhere from 1, 5, 10, 15, 20, 25, or 30 years, your payments are guaranteed to stay the same. This form of life insurance is often the most cost-effective policy because it offers coverage for a specific number of years.

Why Choose Term Life Insurance?

Choosing the right life insurance can be difficult. With many different policies to choose from, it is important to understand each type and know how much coverage you need. At B2 Insurance, our number one priority is that you are well informed and protected.

  • Get the coverage you need for a designated period of time
  • Significantly lower than for-cash-value insurance
  • It can be used to meet a specific financial obligation

At B2 Insurance, we have developed strong relationships with some of the best insurance companies in the South Bay and across the nation. Our team leverages our relationships to ensure you get the best term life insurance policy for a price that works for you. We take the time to get to know your goals, needs, and budget to ensure you are getting the right coverage for your lifestyle.

Understanding Term Life Insurance Through Our FAQ

Although life insurance is a smart investment for everybody, not everyone knows why they need life insurance. Term life insurance is a great way for you to get the coverage you need for a time frame that works best for you. To better understand term life insurance, we have answered some of our most frequently asked questions. If you still have questions about term life insurance after reading, please do not hesitate to reach out to us.

Black Q IconCan I borrow against my term life insurance policy?

Because term life insurance does not carry a cash value component, you typically cannot borrow against it.

Black Q IconWhy should I buy term life insurance?

Term life insurance can help your family in a number of ways. People generally purchase term life insurance so their family can preserve their current standard of living, even after they have passed. This form of life insurance will help your spouse pay for childcare and additional educational expenses, and serve as income to cover funeral expenses.

At B2 Insurance, we have the experience and credentials to help you make an informed decision about your life insurance needs. We specialize in life insurance, financial planning, and retirement planning to ensure you get an individualized plan that accommodates your exact needs.

Because we are connected to a variety of life insurance companies, we are able to present you with multiple quotes, allowing you to make the best decision for your lifestyle.

Black Q IconWho needs life insurance?

Although life insurance is a smart investment for everybody, not everyone knows why they need life insurance. If you are unsure whether or not you need life insurance, give us a call and we will evaluate your individual situation and life insurance needs. In general, the following guidelines will help you decide whether you need life insurance.

Life insurance is necessary if:

  • You have children
  • You are married with a single income
  • You own your own business
  • The value of your estate is greater than the tax-free threshold

Black Q IconIs term life insurance taxable?

In most cases, your loved ones will not have to pay income taxes on the death benefits they receive. In most cases, estate taxes may apply. At B2 Insurance, we can ensure that your loved one’s receive the most from your death benefit.

Black Q IconWhat is Term Life Insurance?

Term insurance is a type of life insurance that provides an amount of money, a death benefit, to your beneficiaries in the event that you pass away in the designated time period of your policy.

Terms can range from one, five, 10, 20, 25, 30, or 50 years and cover anywhere from $25,000 to $1,000,000. If you do not pass in this time period, your policy can expire, but you have the option to convert or renew your policy for a more permanent option.

There are two types of term life insurance, level term and decreasing term. With level term life insurance, your death benefit will remain the same throughout your entire policy. With decreasing term your death benefits will drop throughout the duration of your policy in one year increments.

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