Term Life Insurance for Life
I just spoke to a 68 year old gentleman who was looking for a 30 year term life insurance policy. At his age, there aren’t any companies that would issue a term policy for 30 years, so we looked at a 20 year term policy with a $1,000,000 death benefit. If approved at Preferred Plus, the most favorable health class, his annual premium would be approximately $16,000 a year. The policy would take him to age 88, at which time it would be very difficult to secure a new policy. Lifetime Term Life Insurance? I know, there really isn’t a product know by this name. However, if it walks like a duck, etc., etc., it is a duck. A Universal Life Insurance policy with lapse-protection is a policy that lasts a lifetime (until age 121, in most cases). These policies won’t typically accumulate cash-value, like a whole life policy or universal life policy (without the lapse protection). Even when the cash value dips to zero, something that would be cause for alarm in a standard universal life policy, the death benefit and premiums are still guaranteed (provided the premiums are paid in a timely fashion). Let’s recap – guaranteed level premiums, guaranteed death benefit, no cash value – sounds like a term life insurance policy to me.
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Term Life Insurance for Life
Written by Admin on January 26, 2012 under Life Insurance.
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