Thrivent's Decreasing Term Life Insurance: What You Need To Know

Thrivent is a financial services organization that offers a range of insurance products, including term life insurance. Term life insurance is a popular way to protect your loved ones financially in the case of your unexpected passing during a specific period. Thrivent's term life insurance policies can last from 10 to 30 years, with the option to convert to permanent life insurance before the expiration of the term. While Thrivent's term life insurance policies offer level premiums and death benefits, they do not appear to offer decreasing term life insurance, which would allow policyholders to reduce their coverage and premiums over time.

Thrivent's term life insurance features and considerations

Thrivent's term life insurance provides basic life insurance coverage. You pay the premiums when they are due, and even if your health changes, you are guaranteed that during the term you select, your premiums will remain level and your death benefit will not change.

Initial Term Lengths

There are several term lengths to fit your needs:

• 10-year (available to ages 18–75)
• 15-year (available to ages 18–70)
• 20-year (available to ages 18–65)
• 30-year (available to ages 18–55 for non-tobacco, ages 18–50 for tobacco)

Convertible to Permanent Life Insurance

Basic Term Conversion is included on all term contracts. Extended Term Conversion can only be selected at issue for an additional cost. Term life insurance conversion privileges allow you to convert your contract to permanent life insurance without underwriting or answering health questions.

Basic Term Conversion

At any time during the next five years, you can convert all or some of your death benefit to any permanent life insurance product Thrivent offers.

Extended Term Conversion

At any point before you reach age 70 or the end of your term period, whichever comes first, you can convert all or some of your death benefit to any permanent life insurance product Thrivent offers.

Accelerated Death Benefit for Terminal Illness Rider

Standard on all contracts. It pays the death benefit if you have a life expectancy of 24 months or less as certified by your qualified physician.

Disability Waiver of Premium Rider

An optional rider available for an additional cost that waives your premiums if you become totally disabled as defined in the contract.

Initial term lengths offered by Thrivent

Thrivent offers term life insurance for a specified time period of 10, 15, 20, or 30 years. The initial term length options available depend on the age of the applicant. Here are the term length options based on age:

• 10-year term: available for ages 18–75
• 15-year term: available for ages 18–70
• 20-year term: available for ages 18–65
• 30-year term: available for ages 18–55 for non-tobacco users and ages 18–50 for tobacco users

It's important to note that the term length options decrease as the applicant's age increases. For example, Thrivent does not offer 30-year terms to individuals aged 56 or older, but a 15-year policy can still be purchased at age 70, and a 10-year policy at age 75.

Thrivent's term life insurance provides basic life insurance coverage, guaranteeing that during the selected term, the premiums will remain unchanged, and the death benefit will not change, even if the insured person's health changes. Additionally, Thrivent's term life insurance is convertible to permanent life insurance, allowing policyholders to extend their coverage and ensure their loved ones' needs are met in the future.

Thrivent's term life insurance conversion options

Thrivent offers term life insurance conversion options that allow you to change your death benefit to permanent life insurance. Basic Term Conversion is included on all term contracts, and Extended Term Conversion can be selected for an additional cost. These conversion privileges allow you to convert your contract to permanent life insurance without undergoing underwriting or answering health questions.

Basic Term Conversion

With Basic Term Conversion, you can, at any time during the next five years, convert all or some of your death benefit to any permanent life insurance product offered by Thrivent.

Extended Term Conversion

Extended Term Conversion allows you to convert all or some of your death benefit to any permanent life insurance product offered by Thrivent before you reach the age of 70 or the end of your term period, whichever comes first.

Advantages of Converting to Permanent Life Insurance

Converting to permanent life insurance ensures that your coverage continues to meet your needs and those of your loved ones in the future. As you age, the cost of insurance increases, and converting to permanent life insurance can be a more affordable option for lifelong coverage. Additionally, you won't need to retake a medical exam, and your new policy will be priced in the same risk class as your term policy, even if your health has deteriorated.

Permanent life insurance can also help you build cash value that you can access for various purposes, such as a down payment on a home, college costs, retirement income, or emergency expenses. It lasts your entire life, providing extended protection for your loved ones.

Increasing the death benefit on your Thrivent coverage

Thrivent offers term life insurance, which provides a payment to your beneficiaries if you die within the term of the contract. A term contract typically lasts for 10, 15, 20 or 30 years, and it's meant to cover financial obligations that end before the term does.

You can increase the death benefit on your Thrivent coverage in several ways. One option is to purchase a larger death benefit upfront, as the younger and healthier you are, the larger the death benefit you can purchase for the same premium. This can provide a good opportunity to future-proof your coverage by anticipating future needs. For example, a young couple with a mortgage might choose a 30-year, $1.5 million term policy naming each other as the beneficiary, even if their only obligation at the moment is a $400,000 mortgage.

Another option is to purchase additional term policies to create a "ladder" of coverage. This means purchasing more than one term life insurance contract to align your coverage with your needs and budget. For example, instead of purchasing one 30-year policy with a $1.5 million death benefit, you might purchase three smaller policies with 10-, 20- and 30-year terms. The 20-year policy might provide $1 million in coverage to account for the years when you expect to have the largest responsibilities and the least accumulated savings. Meanwhile, the 10- and 30-year policies might each provide an additional $250,000 in coverage to reflect a larger mortgage balance when you're younger and a just-in-case benefit when your children have moved out and you're approaching retirement.

Finally, you can convert your term policy to a permanent policy, which provides coverage for your entire life as long as premiums are paid and the contract retains its value. Converting your policy will increase your premiums, but you won't have to pass another medical exam or undergo a review of your medical history. Thrivent also offers whole life insurance, universal life insurance, and variable universal life insurance as permanent coverage options.

Thrivent's permanent life insurance advantages

Thrivent's permanent life insurance offers a range of advantages to its customers. Here are some of the key benefits:

Income Replacement and Support

Thrivent's permanent life insurance provides income replacement and financial support to your loved ones in the event of your death. It helps them maintain their standard of living and gives them time to grieve without the immediate financial burden.

Legacy Building

Thrivent's permanent life insurance allows you to leave a memorable legacy behind. It enables your family to honour your memory in meaningful ways, such as making donations to causes that were close to your heart.

Long-term Coverage

Unlike term life insurance, Thrivent's permanent life insurance offers lifetime coverage. It provides peace of mind knowing that your loved ones will be protected regardless of when the unexpected occurs.

Investment Opportunities

Thrivent's permanent life insurance has the potential to build cash value over time. This accumulated cash value can be accessed during your lifetime, providing a valuable source of funds for retirement, education expenses, or other financial goals.

Tax Benefits

The cash value component of Thrivent's permanent life insurance offers tax advantages. Withdrawals from the cash value are typically tax-free, and the death benefit paid to beneficiaries is also generally tax-exempt.

Flexibility

Thrivent's permanent life insurance offers flexibility in terms of coverage amounts and premium payments. You can choose from different types of permanent life insurance, such as whole life, universal life, or variable universal life, to suit your needs and risk tolerance.

Thrivent's permanent life insurance provides a comprehensive financial safety net for individuals and families, ensuring protection, support, and opportunities for legacy building.

Frequently asked questions