Term life insurance is a simple and affordable way to provide financial protection for your loved ones in the event of your death, because they wouldn’t just lose you—they’d lose all the financial support you provide.
How it works:
The application process is simple. Get covered in 3 simple steps.
See your options
Browse our marketplace. ll providers are A and A+ rated life insurance carriers
Select from options provided
Pick your plan. Answer a few basic questions to get matched with a provider.
After you choose your plan, complete our online application. It’s simple, straightforward, and it only takes about 10 minutes.
Term Life Insurance
What is it and how does it work?
Term life insurance is the most simple and affordable life insurance option. It provides coverage for a set period of time or “term” (typically 10–30 years), and is designed to protect your dependents during that term. If you pass away during the term period, your beneficiaries receive a cash payment referred to as the “death benefit” to cover expenses or income loss related to your passing.
Term life insurance might be right for you if:
What’s the difference between term and whole life insurance?
The main differentiating factor of whole life insurance is that it lasts for your entire life and can be used as an investment vehicle—unlike term policies, which expire after your chosen length and have no investment component. Some insurers invest your whole life premium payments and the interest earned on those investments goes back into your policy as accrued cash value. For these reasons, whole life insurance policies typically cost 5-15x more than term policies for the same amount of coverage. Whole life insurance is a good option for those with complex financial situations, or someone seeking the security of coverage for the remainder of their life. Term life is a good fit for those who want the most affordable coverage or who need to replace their income over a certain period, for example until their children are no longer dependent or the mortgage is paid off.
Products from Industry best of breed Carriers
Money Avenue connects our clients with some of the industry’s top life insurance carriers and reinsurers to provide you with simple, affordable policies. The application process has been streamlined via predictive modeling and proprietary technology to make it easier for customers, and we leave the actual insuring to the industry giants that present offers to you at terrific value.
WHY DID WE GET HERE?
It’s ultimately up to your beneficiaries to decide how to use the payout. People often use it to help cover things like:
- Home mortgages or rent
- Lost income
- Loans & debt
- Children’s education
- Living expenses
- Funeral costs
In general, it’s simple for your beneficiaries to file a claim and receive the payout. If you pass away while your coverage is in force, your beneficiary can file a claim with your insurance carrier, and the carrier will work with them to issue the death benefit payout. Your insurance carrier will be identified on your policy documents. Assuming there are no unusual complications, your beneficiary will receive an untaxed, lump-sum payment for the value of the policy (the death benefit). For example, if you purchase $1 million in coverage, your beneficiary will receive a tax-free $1 million lump-sum payout.
If you do not pass away during your term, you have a few options when your term ends:
- You can apply to extend your term to ensure you always have coverage.
- You can apply for a new policy with a longer or shorter term, with the same, or more, or less coverage.
- You can elect to not get another policy if you determine you no longer need the financial protection.