What You Need To Know About Increasing Term Life Insurance

There’s truly no better feeling than knowing the financial future of your loved ones is protected. But how do you find coverage that fits your current — and future — needs? You know you’ll need more coverage in the future but aren’t quite ready to pay the higher premiums. There’s good news — our Increasing Term Life Insurance product may provide the coverage you need now, but also allows you the opportunity to obtain more coverage over the next five years. Here’s what you need to know about increasing term life insurance.

What Is Increasing Term Life Insurance?

Our Increasing Term Life Insurance product is designed for people who know they want coverage now, but also know they’ll need more coverage in the future. In the next few years, do you plan to expand your family, earn a higher salary, buy a new house, start a business, etc.? If so, increasing term life insurance may be a good fit for you. It allows you to purchase a lesser amount of coverage now — for a lower premium — and then increase coverage at set increments over the first five years of the policy. In total, you can double your policy’s death benefit amount over five years with no additional underwriting.

Optional Increasing Term Riders

As an added bonus, several optional riders are available for increasing term life insurance. A rider (commonly known as an add-on to your life insurance policy) can enhance your life insurance coverage. Adding a rider to your increasing term policy can help you tailor your coverage to your specific needs.

These increasing term riders can help you customize your coverage:

• Daily Living Rider: This rider accelerates a portion of your policy’s death benefit if you have been chronically ill for a certain amount of time and are expected to be for a specific time period. This rider is available at issue only. It’s important to note that any benefit paid from the rider will reduce the death benefit payable on the policy.
• Children’s Term Life: Insurance is a great way to add coverage to your existing life insurance policy to help ensure your children have the coverage they need.
• Waiver of Premium: This rider gives you options if you were to experience a total disability that continues for at least 90 consecutive days. With this rider, your premiums may be waived while the disability occurs.

Extended Protection Options

If you decide you want coverage beyond the 20 years an increasing term policy offers, you have options. One is to convert your policy to a permanent life insurance policy prior to your 70th birthday. It is important to note that conversions are not allowed within the first policy year. Both full and partial conversions are allowed, and you may be eligible for conversion credit when you convert your term coverage to a permanent life policy.

Protecting Your Future

Choosing a life insurance policy to protect you today and in the years to come is a big decision. To learn more about the life insurance options available to you — including our Increasing Term product — contact your local Farm Bureau agent today.