First Investors Life Level Term Life Insurance

What is Term Insurance?

First Investors Level Term life insurance is temporary insurance that provides pure protection for a limited period of time. The face amount of the policy is payable to your beneficiary as long as the policy remains in force. The proceeds paid to your named beneficiary are generally free from federal income tax. Term generally offers a lower initial premium than other types of policies for the same level of coverage, allowing you to get more coverage for your premium dollars. Also, term policies can be converted to permanent life insurance such as the Insured Series Policy (ISP) or Interest Sensitive Whole Life (ISWL). Unlike permanent insurance, term insurance does not offer cash value accumulation.

When Can Term Insurance Be Appropriate?

A short-term need — When coverage is needed for a limited amount of time, term insurance may be the right choice. For example, parents who are planning for the college education of their eight-year old could choose the 10-year level-term to cover the number of years they intend to save for college. Also, term insurance is often used to cover debts such as:
- Mortgages
- Education loans
- Auto loans
Limited funds are available — A family that cannot fit a permanent policy into its budget could select a term policy and later convert it to a permanent plan of insurance such as an Insured Series Policy or an Interest Sensitive Whole Life policy. Term is often a popular choice for younger people who have big dreams and responsibilities, but limited income. A term policy offers the right amount of coverage at a premium they can afford, while protecting their insurability in the future.
As supplemental coverage — Term insurance can be used to supplement the coverage of a permanent policy. For example, if $300,000 is considered adequate coverage, it may be cost effective to purchase a $100,000 permanent policy along with a $200,000 level-term policy. This blend would provide the necessary coverage at a lower premium than a $300,000 permanent policy. The permanent policy would earn cash value and, eventually, the level-term policy could be converted into an additional permanent policy, without further evidence of insurability.
For business needs — Business owners could utilize term insurance for many of the same reasons that individuals do — when a short-term need exists, when funds are limited and as supplemental coverage. In addition, small business owners could offer level term insurance coverage as an employee benefit to attract and retain good people.

Why Guaranteed Convertibility Is Important

This valuable feature allows you to convert your existing level-term policy to a permanent policy, at your “attained age” (your age at the time of the conversion) regardless of your health in the future. You will not have to answer any health questions, take a medical exam or a blood test. Your conversion privilege is guaranteed. When you're ready, you may convert to an Insured Series Policy (up to and including age 58) or you may choose to convert to any other permanent plan, such as Interest Sensitive Whole Life.