AAA Term Life Insurance

Your term life insurance cost depends on your age, gender, health, family health history, whether you smoke, and other factors. The length of your term life insurance policy and its death benefit amount also affect the premium. 

Generally, if you’re young and in excellent health, your premiums will be lower. Rates typically increase as you age.

With a term life insurance policy, you pay premiums for a term, such as 10 years or 30 years. If you pass away during that term, your beneficiaries—your family members or anyone else you choose—will receive a payment, called a death benefit. If you outlive the policy’s term, they won’t get a payout.

Whole life insurance, on the other hand, is a permanent policy that lasts for your entire life. Whole life insurance rates are higher than those for term life and include a cash value component that enjoys tax-advantaged growth over time.

A term life policy may be best if you’re looking for an affordable option that will help support your family during a crucial period of their lives. Whole life insurance is a good option if you can afford higher premiums and want to be sure that your loved ones will receive money after you pass.

Yes, there are usually age restrictions for term life insurance policies. If you’re in your fifties, for example, you may not be able to purchase a 30-year life insurance policy. Individuals 75 years or older often have trouble obtaining a term life insurance policy. Restrictions vary by insurance company.

When applying for term insurance, you may need to provide:

• Personal information such as your name, street address, date of birth, social security number, and contact information for your primary care doctor.
• Information about your job and lifestyle. Your agent may ask you about your profession and hobbies, so the insurer can better assess your risk.
• Medical information such as your personal medical history, the date of your most recent doctor appointment, your medications, and any hospitalizations. Your agent will also likely ask about your smoking status and whether you use alcohol or drugs.
• Driving violations or convictions. Your agent may ask for this information to better gauge your risk.
• Information about your finances. You may need to provide your annual salary, tax returns, and other insurance policies (such as your workplace plan) to best determine your needs.
• Your policy preference. You’ll need to choose a term length—such as 10, 20, or 30 years—and a coverage amount.
• Your beneficiaries. You’ll need to choose who will receive your insurance policy’s death benefit when you pass.
• Payment information detailing monthly, quarterly, or annual premium amounts.

You may need to undergo a medical exam to get term insurance. This depends on the insurance company, whether you have health issues, the policy, and the coverage amount.

If you outlive the policy’s term, your coverage will end and your beneficiaries won’t receive any money when you pass away. Toward the end of the term, you might have the option to either renew the policy or convert it to a permanent life policy. If you do either, you’ll likely pay higher premiums.

Yes, you can usually convert your term life insurance policy into a universal or whole one, just make sure a conversion provision is included in your original term policy. You will probably need to make your decision by a specific deadline, so read your policy to make sure you understand the rules.

No. A term policy doesn’t accumulate cash value, so you can’t borrow against it or cash it out.

Typically the insurer will pay a death claim to your beneficiaries within 60 days of receiving a claim and all the necessary documents, such as the death certificate. However, this can vary by carrier and the provider’s processing procedures.