Term Life Insurance: Choosing the Right Option for Your Peace of Mind
- Stephanie Ehman, CIC, CPRM, CISR, CPSR
- Mar 3
- 2 min read
Updated: Jul 30
Term life insurance is a practical choice for those seeking affordable coverage for a specific period. It comes in several types, each tailored to different needs. Here’s a closer look at Regular, Simplified, and Return of Premium term life options to help you make the best decision.
Regular Term Life: This is the standard option, offering a set coverage amount for a fixed term—usually 10, 20, or 30 years. It provides a death benefit to your beneficiaries if you pass away during the term. Regular term life is often the most affordable choice, ideal for anyone seeking straightforward coverage for a specific time period.
Simplified Term Life: Simplified term life is similar to regular term but with one big advantage: no medical exam is required. Instead, you answer a few health-related questions to qualify. This makes it a popular choice for those not wanting a medical exam or anyone looking for a quick approval process.
Return of Premium (ROP) Term Life: With ROP, you pay slightly higher premiums, but at the end of the term, you get all your premiums back if you outlive the policy. It’s like a built-in savings feature, making it a good fit for those who want coverage but also want a return on their investment if they don’t need it. You also have the option to convert it to a whole life policy at the end of the term.
Your agent can help you determine which of these three options is best for you and your family. Your decision to investigate life insurance is a smart one. There is no better way to care for the financial health of your family than through securing a life insurance policy.
Stephanie Ehman, CIC, CPRM, CISP, CPSR, is a risk consultant at Knight Insurance Group.
