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Term Life FAQ

  • Where can I purchase SBLI products?

    SBLI products are now available in most states and the District of Columbia. Our products can be purchased directly from the company’s insurance professionals by calling 1-888-GET-SBLI or through our large national network of independent brokerage agencies. To locate an agent in your community, please call 1-877-OUR-SBLI.

  • I noticed that SBLI offers two different term life insurance products: Guaranteed Level Premium Term Life Insurance and Yearly Renewable Term Life Insurance. Why should I choose one over the other?

    One advantage that guaranteed level premium term life insurance has over yearly renewable term life insurance is that your premiums remain level (fixed for a period of time). The price you pay will never go up or down during this period. Premium is based on your age at the time you purchase the policy and it does not change during the guaranteed level premium period. It functions exactly as we described above, and can cover you until you reach 85 years of age. Keep in mind after the guaranteed level premium period that you choose ends, the premium will go up until age 85 when the policy ends.

    With yearly renewable term life insurance your policy renews every year. Each year, the premium you pay will be calculated based on your current age. It is very inexpensive in the early years, then increases as you get older. The plan will automatically renew every year until you reach the age of 90 and you will not be required to have a paramedic exam or provide proof of insurability each year. The term life insurance premium may increase annually. If you need coverage from age 75 to 90, you are able to continue the plan with a fixed premium rate, but your coverage amount will decrease annually.

    Another important benefit is your ability to convert your yearly renewable term life insurance policy or level premium term insurance policy to a SBLI whole life insurance policy, or to a conversion universal life (UL) policy, without having a paramedic exam, or providing additional proof of insurability. Your coverage amount will be for a face value amount of not more than the face value amount of your term life insurance policy on the date that you converted the policy. Other details, such as when you can convert, vary by policy series and are expressed in your contract.

    If you need term life insurance to cover you for an extended period of time (rather than just a few years), it may be financially beneficial to choose a guaranteed level premium term life insurance policy over a yearly renewable term life insurance policy. A licensed representative from SBLI can discuss the different options with you, to help you decide the type of term life insurance that is appropriate for you.

  • If I choose Guaranteed Level Premium Term Life Insurance, what length of time (term) should I choose?

    SBLI offers Guaranteed Level Premium Term Life Insurance policies for 10, 15, 20, 25 or 30 year periods. As a general rule, if you are younger, you will probably want to choose a longer term.  If you are closer to retirement, a shorter term may be more appropriate.

    The main goal when choosing a life insurance policy period is to protect your loved ones if an unexpected death occurs. People also buy life insurance to cover final expenses, such as burial expenses and estate taxes. A licensed representative from SBLI can discuss the different options with you, to help you decide the amount of coverage and term length that is right for you.

  • At what age should I buy a term life insurance policy?

    The earlier, the better. Life insurance becomes more expensive as you age.

    That’s why most people choose Guaranteed Level Premium Term Life Insurance to protect their family’s future. Term life rates remain the exact same for the entire period selected. SBLI offers term life policies of 10, 15, 20, 25, and 30 years in length.

  • Will my SBLI Term Life Insurance premium increase during the term length of my policy?

    If you purchase guaranteed level premium term life insurance, your premium rate will not change during the period that you select. It will only go up at the end of the period that you initially selected. This increase may be very significant, so you may want to consider the longest initial period that best suits your budget.

    If you purchased yearly renewable term, the premium will increase annually. Each year, the premium you pay will be calculated based on your current age. It is very inexpensive in the early years and then increases as you get older. The plan will automatically renew every year until you reach the age of 90 and you will not be required to have a paramedic exam or provide proof of insurability each year. The term life insurance premium may increase annually.

  • I have a Term Life Insurance policy. Can I exchange it for a Whole Life Insurance policy?

    Yes! With our Conversion Feature, you can exchange (or "convert") your SBLI term life insurance for a whole life insurance policy or conversion universal life (UL) policy without having a paramedic exam or even answering a health questionnaire during the conversion period that is allowed in the policy.