Term Life Insurance
What is it and how does it work?
Term life insurance features the most straightforward and affordable life insurance option by covering you for a set "term" (typically 10 to 30 years). If you pass away during the term period, your beneficiaries receive a cash payment.
Term life insurance with Ethos might be right for you if:
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Your loved ones would need to replace lost income while raising children or paying a mortgage
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You have short-term financial responsibilities such as loans, a new business, or credit card debt
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You want the most affordable life insurance coverage
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You appreciate the straightforward nature of term life insurance
What’s the difference between term and whole life insurance?
The answer lies in the names. Term life insurance uses premiums to cover you for the determined "term" of the policy, expiring if not claimed within that timeframe. Whole life insurance can last your entire life if premiums remain current. Whole life policies also have the potential to accrue cash value, depending on the policy. Still, premiums typically cost between five and 15 times more than a term policy for the same benefit amount.
Term life may provide a good match for someone seeking affordable coverage to replace lost income over a critical period, such as while raising children or paying off a mortgage. Whole life insurance offers options for those with complex financial situations or someone desiring the security of lifetime coverage.