Increasing Term Life Insurance
Whether you’ve got a bigger house or more kids in your future, an increasing term policy can help ensure the money is there to help protect them.
What Is an Increasing Term Life Insurance Policy?
Life insurance helps you protect your family financially, even if you’re no longer there. When you die, your life insurance company pays out a lump sum that your family can use to pay for day-to-day expenses, your funeral costs, leftover debt, or whatever else they need.
Term life insurance plans keep you covered for a set period of time, typically 10 to 30 years. Most term policies are level term, which means your premiums, or payments, and your death benefit stay the same year after year. In some cases, though, you may need an option where your coverage can grow over time to keep up with your changing financial needs.
With increasing term life insurance, your death benefit increases over the life of the policy. This type of insurance can provide extra protection as the years go by to cover growing expenses, like a new house or bigger family, or protect your death benefit from inflation. Keep in mind, though, that your payments are likely to increase along with your death benefit. Here’s a closer look at how increasing term works and if it’s right for you.
How Does Increasing Term Insurance Work?
With increasing term, your coverage amount will rise by increments throughout the policy term, sometimes along with your premium rates. For example, if you choose a $250,000 policy with a 5% increasing term, your policy face amount will be $312,500 in five years.
These types of policies are less common than other types of term life policies, and can cost more than a level term plan because you gain a larger payout over time. When choosing a plan, consider your budget, current financial responsibilities, and future goals.
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Life Insurance Quotes Through eFinancial
At eFinancial, we’re committed to helping you find high-quality, affordable life insurance that meets your needs. We offer top life insurance products from more than 20 nationally recognized life insurance companies and expert, personalized support from our agents. We’re here to support you at every step in the process so you can find the right insurance plan as quickly as possible.
To get started, request a free, no-obligation online quote or call 866-388-3996800-957-9525 to talk with one of our agents.