| |
Term Life Insurance Features
By Ivon T. Hughes
Term life insurance is considered to be pure insurance
protection as it has no other value. This is in contrast
to a permanent life insurance policy such as whole life
which builds value over time.
Term Life Insurance Does Have Value
But term life insurance does have some value in certain
circumstances.
A person in the upper age brackets who has a term life
insurance policy he no longer wants, is able to sell this
policy to a company which makes these types of
investments. For example, if the person is aged 65
years or more in good health, a company would buy
this policy and convert it into a whole life policy. Then
they would calculate his life expectancy and amount of
premium they would expect to pay, giving him an
amount taking these figures into consideration.
Is This A Good Deal For The Term Life Insurance Buyer?
What else is he going to do with it, if he doesn't want
to continue to pay? If he just stops paying on his term
life policy, you can be sure the life insurance company
won't offer him a nickel.
But if he is smart enough to live where theses types of
transactions are permitted, he will receive a cash
payout! What is wrong with that? He owns the policy
and can do with it as he wishes.
Is This Term Life Policy Good For The Purchaser?
Of course. They buy any number of term life insurance
policies and spread the risk again with some clients
dying earlier or later than anticipated. The only loser is
the life insurance company which has been getting fat
off the premium all those paying years, certain in the
knowledge that there is very little chance they will
have to pay out the death benefit.
How Do We Know This Is A Good Deal All Around?
Because a lot of life companies own or own shares in
these companies purchase these polices. Obviously
they have figured out that if the client sells a policy
that they should be in a position to profit.
Is A Term Life Policy Good Till You Die?
Yes, as long as you buy the correct type. A term 10 or
term life policy for 20 years will not do it if it expires
before your death. You need to buy a term100 year
policy so that you can be reasonably sure you won't
outlive it. You do NOT have to buy whole life to achieve
this result. Just make sure that if you want to leave
money when you die, get in early and buy a term life
policy to age 100.
About the Author
Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at http://www.hughestrustco.com.
Article Source: http://www.simplysearch4it.com/article/25137.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/25137.html" as shown above and make it hyperlinked. |
| Some other articles by Ivon T. Hughes | |
| |
|
|
|
