Term Life Insurance Plans

Marshall & Sterling Insurance can work with you to develop a group life insurance program that meets your company's needs, budget, and company culture–now and as the company grows.


Term insurance is generally the least expensive and least complicated type of life insurance. It provides insurance protection at a low cost for a specified period of time, such as 10, 20 or 30 years. If the policy owner dies within the term period, a death benefit is paid to the specified beneficiary. If the policy owner is still living at the end of the term, protection ceases unless the policy is renewed. There is no "accumulation" element, or cash value with term insurance.
Who is it for?
  • People with a temporary need for life insurance protection.
  • Those who need a large amount of insurance protection but have limited budgets.
  • People with specific business needs (e.g., business owners who want to cover the life of a key employee who has a set number of years until retirement).
The Benefits:
  • It provides insurance protection for a low cost (at least initially).
  • If needs change, most policies allow the policy owner to convert the term policy to a permanent life insurance policy without having to take a medical exam or provide other information about their health.
  • Term insurance is a good way to supplement other coverage when an employee has added financial responsibilities for a given period of time (e.g., mortgage, college expenses).
  • Death benefits are generally received free from income tax.
Some Drawbacks to Consider:
  • There is no cash value element, so this does not provide the tax-deferred cash value of permanent life insurance policies, such as Whole Life.
  •  Premiums generally increase with age and they could become unaffordable later in life.
  • Once the term period expires, the insurance coverage ceases and the policy has no further value.