Term Life Insurance
Help your loved ones have the financial security and peace of mind they deserve with Term Life Insurance
If the unexpected happened to you, would your family's quality of life be secure? Ask yourself...
...Would my family be able to meet immediate expenses such as funeral costs and outstanding medical bills?
...Would my spouse have enough money for our children's education? Mortgage payments? Other outstanding debts?
44 percent of all U.S. households (48 million) either don't own life insurance and believe they should or own life insurance and believe they need more.1
You work hard to give your family a comfortable and secure life, and you want to protect the life you've built. According to almost 75 percent of U.S. families, life insurance is the best way to protect against the premature death of a primary wage earner. Yet despite this importance, many Americans are not protected against the unexpected:
- Almost one-third of U.S. adults have no life insurance protection at all.1
- Among those who do own life insurance, 40 percent believe they don't have enough.1
- 25 percent feel they do not have a plan in place to provide a decent standard of living for their family if they died tomorrow.1
Term Life Insurance from Colonial Life & Accident Insurance Company (Colonial) offers a predictable way to provide peace of mind for you and your family. You can help protect your loved ones from unpaid debts, secure your children's education and goals, and ensure financial stability during high-need years.
Advantages of term life insurance
Economical - Purchase the full amount of coverage you need at a low initial cost (compared to cash value insurance) - for when your need for protection is the greatest.
Not Taxable to Beneficiaries - Provide a life insurance benefit that, in most instances, is free from income tax for the beneficiary.
Pure and Simple - Provide protection for short-term obligations, such as a car loan or mortgage.
Key features of Colonial's Term Life Insurance
Flexible Term Periods:
Three term coverage periods are available to fit your needs during more financially demanding years.
Level Death Benefit and Guaranteed Premiums
For the term of the policy, your premiums will not increase and your death benefit will not decrease, unless you receive an accelerated death benefit. After the end of the selected term period, premiums will increase annually at a guaranteed rate based on your age.
Guaranteed Renewable
Your policy is guaranteed renewable to age 95.
Convertible to Cash Value Plan
You can convert your policy to a Colonial cash-value life insurance policy any time through age 75 (unless you have used the Accelerated Death Benefit Provision or Waiver of Premium Benefit Rider) with no evidence of insurability. Premiums will be based on your age at the time you convert your policy.
Accelerated Death Benefit Provision
This benefit is automatically included in your policy. If you are diagnosed with a terminal illness (condition), you can request up to 75 percent of the policy's death benefit, to a maximum of $150,000. This benefit is included at no additional premium. We deduct a fee only if you use the benefit, and your death benefit will then be reduced by the amount you receive. In addition, there may be tax consequences for receiving the accelerated benefit; ask your tax advisor for advice. (State variations exist for this benefit. Please refer to your policy for details.)
Portability
Your policy is portable, which means you can take it with you at the same premium if you change jobs or retire.
Plan options
Available for you and your spouse
Choice of three plan options depending on the insured's age and the term period needed.
- 10-year level term: Provides coverage for 10 years with guaranteed level premiums and may be renewed annually thereafter without evidence of insurability.
- 20-year level term: Provides coverage for 20 years with guaranteed level premiums and may be renewed annually thereafter without evidence of insurability.
- 30-year term: Provides coverage for 30 years with guaranteed level premiums and may be renewed annually thereafter without evidence of insurability.
Optional coverage for your spouse and dependent children
Available at an additional cost:
Your Spouse - Two Options
- Term life policy: Cover your spouse with a term life insurance policy that offers guaranteed premiums and level death benefits equivalent to those available to you - whether or not you buy a policy for yourself.
- Term life rider: Add a term life rider for your spouse to your policy, up to a maximum death benefit of $50,000. Two term period options are available: 10-year and 20-year (20-year rider available with a 20- or 30- year term policy only).
Your Dependent Children
- Children's term life rider: Add a term rider to your policy and cover all of your dependent children with up to $10,000 in coverage each - for one low premium.
Added protection with optional riders
Create a plan that meets your individual needs by adding one or more of these benefits riders to your term life insurance coverage for an additional cost:
Waiver of Premium Benefit Rider - Waives all premiums (for the policy and any riders) if you become totally and permanently disabled before the age of 65. To be considered permanent, your total disability must continue with no interruptions for at least six consecutive months. Premiums waived by this rider do not have to be repaid.
Accidental Death Benefit Rider - This rider provides an additional benefit to the beneficiary if the insured dies as a result of an accident before age 70. Benefit doubles if death occurs while insured is a fare-paying passenger on a public conveyance such as a commercial aircraft or taxicab. An additional seatbelt benefit is also payable.
See your Colonial representative for additional information specific for your state.
Term Life Insurance Worksheet
| Primary | Spouse |
|---|---|
| Name_______________________________________ | Name_______________________________________ |
Base Policy Term Period:
|
Base Policy Term Period:
|
| Age__________ Face Amount $_______________ | Age__________ Face Amount $_______________ |
| Tobacco/Nontobacco _____ | Tobacco/Nontobacco _____ |
| Policy Premium - $__________ | Policy Premium - $__________ |
| Children's Term Rider* Issue ages: 14 days to 18 years $_______________face amount |
Children's Term Rider* Issue ages: 14 days to 18 years $_______________face amount |
Spouse Term Rider - choose one:
|
Accidental Death Benefit - $__________ Waiver of Premium Benefit*** - $__________ |
| Accidental Death Benefit - $__________ | |
| Waiver of Premium Benefit - $__________ | |
| TOTAL PREMIUM - $__________ | TOTAL PREMIUM - $__________ |
Exclusions and Limitations
If the insured commits suicide within two years (one year in CO and ND) from the issue date, whether he is sane or insane, we will not pay the death benefit. We will terminate this policy and return the premium paid, without interest. In MO, should death occur as the result of suicide, our company is responsible only for the return of premiums paid when application is made with intent to commit suicide. You will receive a policy summary or illustration (whichever is applicable to your state) when your policy is issued. This policy has exclusions, reductions of benefits and terms under which the policy may be continued in force or discontinued. For costs and complete details, call or write your insurance agent or the company, whichever is applicable. Products not available in all states and may vary by state.
Plan design availability may vary by age, by state and by employer option.
*The Children's Term Rider may be added to either the primary or spouse policy, not both.
** Not available with a 10-year term policy; primary insured must have a minimum 20-year term policy.
*** Available for the spouse policy, subject to home office approval.
1 Facts About Life, LIMRA International, 2005