What is it?
Term Life Insurance is, quite simply, insurance that protects you for a specific period of time, or "term". You pay your premium and if you die during the period of time that you're covered, SBLI will pay benefits to your loved ones. It's that simple.
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Why do I need it?
You don't want your loved ones to face a financial burden if you die and life insurance will help safeguard against that likelihood. So why is term life insurance a good option for you?
Low-cost Term Life Insurance has lower initial premiums than other types of insurance, which makes it suitable for budget-conscious families. You can begin to insure your family at a price you can afford. It is a way to make sure that your family can pay for things like:
- Expenses at the time of your death: medical bills, burial costs, estate taxes.
- Ongoing family expenses, like the mortgage, day care, tuition, debt repayment and even paying into retirement accounts.
- Future family expenses, like children's college tuition, elder care, moving, or finding a new job.
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How does it work?
The first thing you need to do is determine what the financial burden would be if you were to die today. Do you have a mortgage? Do you have children? What are their ages? How old are you now? The answers to these questions will help you determine how much money your loved ones would need to cover their current and future expenses if you unexpectedly die. You can use our handy life insurance calculator to help you determine this amount.
You will pay a Term Life Insurance rate that is fixed for a guaranteed amount of time. This is known as your "guaranteed level premium rate". The length of time depends upon the policy duration and coverage amount that you choose. Once the guaranteed level premium rate period ends, your term life insurance premium rate will increase annually.
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What are my term life insurance options?
SBLI offers two types of low-cost term life insurance: guaranteed level premium term life insurance and yearly renewable term life insurance.
Guaranteed Level Premium Term Life Insurance
As the name implies, this type of term life insurance has premiums that remain level (fixed for a period of time). The price you pay will never go up or down during this period! Your premium is based on your age at the time you purchase the policy and it does not change during the guaranteed 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.
SBLI offers the following guaranteed level premium term life insurance options:
- Guaranteed Level Premium duration choices: 10, 15, 20, 25, or 30 years
- Policy amount available: from $100,000 to $30 million ($500,000 maximum coverage for ages 70-74)
At the earlier of age 70 or at the end of the guaranteed level premium period, you can convert your level term life insurance policy to an SBLI whole life insurance policy or a conversion universal life policy (Conversion UL), without having a paramedic exam or providing additional proof of insurability. Your coverage amount will be for a face amount not greater than the face amount of your existing guaranteed level premium term life insurance policy. Ask your financial representative or an SBLI agent for details.
Yearly Renewable Term Life Insurance
As the name implies, this type of term life insurance 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 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.
If you need coverage from age 75 to 90, you are able to continue the plan with a fixed term life insurance premium, but your coverage amount will decrease annually.
At any time up until you reach the age of 70, you can convert your yearly renewable term life insurance policy to an SBLI whole life insurance policy or a conversion universal life policy (Conversion UL), without having a paramedic exam or providing additional proof of insurability. Your coverage amount will be for a face amount not greater than the face amount of your existing yearly renewable term life insurance policy. Ask your financial representative or an SBLI agent for details. Yearly Renewable Term policy conversion privileges may vary by policy series. Please call for details regarding a specific policy.
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Term Life Insurance Product Comparison Chart
| Guaranteed Level Premium Term | Yearly Renewable Term | One Year Non-Renewable Term
|
| Coverage | To age 85. | To age 75. But extends coverage on a decreasing term basis from age 75 through 90. | One Year
|
| Amounts Available | $100K to max. $30MM. $500K max for ages 70 - 74. | $25K to $10MM. (Note: Coverage amounts from $25,000 to $99,999 are available only for Standard Non-Nicotine and Standard Nicotine classes.) | $100K to $30M
|
| Ages Available | 18 to 74 years for Non-Nicotine. 18 to 70 years for Nicotine.
| 18 to 65 years. | 18 to 90 years..
|
| Riders Available | Waiver of Premium. Child Rider.
| Waiver of Premium. Child Rider.
| None |
| Convertible | This policy may be converted to a level premium whole life policy or a conversion universal life policy (Conversion UL), on any premiums due date which is the earlier of age 70 or end of the Level Term period. | To any level premium whole life plan or a conversion universal life policy (Conversion UL), offered by SBLI, to age 70. YRT policy conversion privileges may vary by policy series. Please call for details regarding a specific policy. | For issues ages 18-64, you may convert all or part of your One Year Non-Renewable Term policy into permanent, cash-value-building life insurance without providing evidence of insurability. This privilege is available as long as the policy is in force. The conversion is done on an attained age basis. Original age term conversions are not available. Conversion is not available if the insured’s issue age is 65 or older.
|
| Premium Payment Options | Annual, semi-annual, quarterly, and monthly (EFTs only). | Annual, semi-annual, quarterly, and monthly (EFTs only). | Single Premium
|
| Free Look Period | 30 days. | 30 days. | 30 days.
|
| State Availability | Click here for state availability. | Click here for state availability. | DE, MA, ME, NH, OK, RI, TX and VT |
- Paramedic exam: For all term life insurance plans, we schedule a simple paramedic exam – at no cost to you – in the convenience of your home or workplace.
- Guarantee: All term life insurance policies have a 30 day, money-back guarantee.
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Riders
The following riders may be added to SBLI’s term life policies:
The Child Rider provides $10,000 of coverage for each of your children who are at least 15 days old and under the age 23 at the time of your policy’s issue, as long as they are unmarried and financially dependent on you.
The rider also offers them future insurability via a conversion option. Each child can receive up to five times the $10,000 face amount in coverage with no evidence of insurability when he or she turns 25 or you reach age 65.
If you have more children after your policy is issued, they can be added to the rider as well.
Waiver of Premium Rider Covers the premiums you pay in the case you become totally and permanently disabled. This rider may be purchased from age 17 1/2 to 55 1/2 for those in acceptable occupations.
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What is my next step?
Now that you've determined that low-cost term life insurance from SBLI is right for you, here’s how to get the information you need to get started!
- Request information and an SBLI representative will call you to answer any questions about our term life insurance products.
- Get an instant low-cost term life insurance quote
- Use our Life Insurance Calculator to help estimate your term life insurance needs
- Consult our Glossary of insurance terms
- Read more about the background of Massachusetts-based Savings Bank Life Insurance (SBLI), which has been providing life insurance since 1907.
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