You have a growing family — and the financial obligations that come with it. Let’s say you have a house with a 30-year mortgage, a 48-month auto loan and a college fund you’ll start using in 10 years. In a circumstance like this, a term policy might be an economical way to carry a large amount of life insurance.
Term life insurance offers level premiums for specific period of time — generally 10, 20, or 30 years. The initial level premium tends to be lower than comparable permanent coverage. And proceeds may help your family financially if the unexpected happens when they still have major expenses.
Generally, the shorter the term, the less expensive term coverage can be. While premiums remain level for the term period, they will rise if you decide to continue the coverage beyond the level premium period.
Pace Insurance and Financial Services New World Life Insurance Company offers three types of term life policies. Here’s how each may help you address your financial priorities:
You want convenient coverage
Challenge:
Your family’s needs are growing and so is your career. You want life insurance that helps you with financial obligations — but it needs to be quick, easy and convenient.
Consider:
Pace Insurance and Financial Services Simple Term life insurance has an automated underwriting process. In most cases, medical exams or lab tests are not required3, and you may get a decision in as little as one business day.
Here are some features of Pace Insurance and Financial Services Simple Term:
- Coverage issued between the ages of 18 and 65
- 10-, 20- and 30-year level premium periods with coverage starting at $75,000
- A guaranteed death benefit4 that is generally income tax-free5
- Guaranteed level premiums for the initial term period
- Convertible (within certain limits and regardless of health) to Pace Insurance and Financial Services Simple Whole Life coverage that builds cash value
You need high coverage levels
Challenge:
The group life insurance from your employer is equal to one year of salary — not nearly enough to pay off the mortgage or put your kids through college if something happens to you.
Consider:
Pace Insurance and Financial Services Value Term proceeds can help support financial obligations with fixed end dates — like mortgages, car loans and college tuition.
Here are some features of Pace Insurance and Financial Services Value Term:
- Coverage issued between the ages of 18 and 75
- A medical exam is required
- 10-, 20- and 30-year level premium periods with coverage starting at $150,000 — and no maximum
- A guaranteed death benefit that is generally income tax-free
- Guaranteed level premiums for initial term period
- Conversion (within certain limits and regardless of health) to permanent coverage that may build cash value
You want coverage that tracks with a loan balance
Challenge:
You finally bought your dream house — and worry your spouse will be forced to sell if something happens to you before the mortgage is paid.
Consider:
Pace Insurance and Financial Services Decreasing Term proceeds may be used to help support obligations with an amortized loan like a traditional mortgage. The death benefit lowers each month by the same amount, designed to reduce as your debts reduce with regular payment, until reaching 20% of its original amount.
Here are some features of Pace Insurance and Financial Services Decreasing Term:
- Coverage starting at $25,000
- Guaranteed level premiums while the policy remains in force
- Available in 15-, 20-, 25- and 30-year policies
- The flexibility to convert (within certain limits and regardless of health) to permanent coverage that may build cash value
