dad with two boys

What is Term Life Insurance

Term insurance gives you life insurance protection for a certain amount of time. If you die during this period of time, your loved ones receive a death benefit. This is an affordable type of life insurance that provides temporary coverage.

Insurance That Fits Your Budget

Term life insurance is a great option if your biggest factor in buying life insurance is price, like when you’re just starting your career or family and are on a tight budget. This type of pay-as-you go life insurance is known as the most affordable type of life insurance. It is also ideal if you are looking for payments that will not increase during the initial policy term (10,15, 20, or 30 years).1

Term life insurance may be right for you if you:

  • Want coverage for a specific amount of time
  • Need low-cost protection for yourself or for your young children
  • Want to help your family pay for mortgage payments, bills, college, or funeral expenses should you die
  • Would like to convert to permanent insurance at a later date

How Term Life Insurance Works

  • Term life insurance covers you for a specific time period, such as 10 or 20 years. At any time before the initial term of the certificate expires (up until you reach age 72), you may wish to convert your coverage to permanent insurance (whole life or universal life). Because you already have a term product with WoodmenLife, you can qualify for this permanent coverage without a medical exam.
  • As with other types of life insurance, term life will provide a death benefit to your family upon your death. You also have the option to choose multiple beneficiaries, or to leave a gift to charity or other organization. However, term life insurance does not build cash value.
  • Also, if you are diagnosed with a terminal condition, you can receive a portion of your life insurance benefits2 while you’re still living, through the Accelerated Death Benefit Rider.

Optional Add-Ons

You can choose to add the following riders to your term life certificate, for an additional fee, to receive more benefits:

Accidental Death Benefit Rider

Provide extra life insurance coverage that takes effect if your death is accidental.

Disability Waiver of Premium Rider

Prepare for the unexpected with this add-on. If you become disabled within the contractual terms of this rider, your premiums will continue to be paid.

Applicant Waiver of Premium Rider

If you have purchased life insurance for a child who is age 15 or younger, and you are listed as the owner on the child’s certificate, this rider helps if you ever become disabled. It will pay the monthly premium on the youth’s life insurance certificate if you become disabled within the contractual terms of this rider.

 

Compare Whole and Term Life

Use the following chart to start learning about which type of life insurance might be best for you.

Whole Life Insurance
Coverage
  • Permanent
Benefits
  • Premiums never go up
  • Builds cash value
  • Death benefit proceeds paid income tax-free to beneficiary
Types
  • Whole Life Paid-up at 100
  • Whole Life Paid-up at 65
  • 10 Pay Whole Life
  • 20 Pay Whole Life
Issue Ages
  • Varies by type of insurance, from ages 0-85

Term Life Insurance
Coverage
  • Temporary (with option of converting to permanent later)
Benefits
  • Less expensive in the short-term
  • Death benefit proceeds paid income tax-free to beneficiary
Types
  • 10 Year Term
  • 15 Year Term
  • 20 Year Term
  • 30 Year Term
Issue Ages
  • Varies by type of insurance, from ages 0-80

Whole Life Insurance Term Life Insurance
Coverage
  • Permanent
  • Temporary (with option of converting to permanent later)
Benefits
  • Premiums never go up
  • Builds cash value
  • Death benefit proceeds paid income tax-free to beneficiary
  • Less expensive in the short-term
  • Death benefit proceeds paid income tax-free to beneficiary
Types
  • Whole Life Paid-up at 100
  • Whole Life Paid-up at 65
  • 10 Pay Whole Life
  • 20 Pay Whole Life
  • 10 Year Term
  • 15 Year Term
  • 20 Year Term
  • 30 Year Term
Issue Ages
  • Varies by type of insurance, from ages 0-85
  • Varies by type of insurance, from ages 0-80

What's next?

Your Representative will prepare a customized plan that best meets your specific needs and budget. Get started by connecting with a Representative near you.

Learn More

Disclosures

  1. Once the initial policy term ends your premiums will increase on an annual basis until age 95. Any increase in premium will not increase the certificate benefits.
  2. Accelerated Death Benefit Rider Forms ICC10 264 6-10, 264 6-10 (XX), O-264 6-10 (XX). All contractual provisions apply and may vary by state. Benefit payments may affect eligibility for public assistance programs Maximum benefit is the lesser of $250,000 or 65% of death benefit amount available and usually paid in one lump sum. Generally benefits received are income tax free. Consult your tax professional to assess the impact of this benefit.

Form ICC16 8648 1-16 & 8648 1-16 (XX). These certificates have exceptions, limitations and restrictions. For costs and complete details in coverage, contact a WoodmenLife Representative.

Accidental Death Benefit Rider: Form 260-XX-0409 & 260-04-1401. All contractual provisions apply and may vary by state.

Disability Waiver of Premium: Form 8649 1-16 (XX), ICC16 8649 1-16, 262-04-1401. All contractual provisions apply and may vary by state.

Applicant Waiver of Premium Rider: Form 263-XX-0409 and 263-04-1401. All contractual provisions apply and may vary by state.

Premiums for 10, 15, 20 or 30-year term are guaranteed not to increase during the initial policy term. Once the initial policy term ends, your premiums will increase on an annual basis until age 95. Any increase in premium will not increase the certificate benefits.

Products are not available in New York and all products may not be available in all states.

WEB33 - 3/16/2020