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 doesnt want to continue to pay? If he just stops paying on his term life policy, you can be sure the life insurance company wont 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.
Term Life Insurance Vs Permanent
Ever since the idea of term life insurance came to the mind of man term life insurance vs permanent has been the center of active and thought provoking debate. Term insurance is without question cheaper than permanent life insurance but when compared with the value built into the latter people have varying ideas as to which is best. What about the cash values and dividends you get from permanent policies? Do you just ignore these? How can cash values and dividends be used to offset cost? Questions worth answering aren t they?
The ever constant innovation of life insurance policies make it m ..
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 wont 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
http://www.articlesfactory.com/pic/x.gif" alt="Computer Technology Articles" border="0">, get in early and buy a term life policy to age 100.
ABOUT THE AUTHOR
Term Life Insurance and Permanent Life Insurance
Term insurance and permanent insurance are two basic types of life insurance. Term life insurance is temporary, and it covers only a specific period of time called the relevant term. Permanent life insurance is the type of insurance where the policy is for the life of the insured and the payout is assured at the end of the policy. Term life insurance builds on cash value while permanent life insurance accrues cash value.
Now let s look at the pros and cons for term life insurance and permanent life insurance.
Term insurance has two advantages. First, its initial premiums are usually lowe ..
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.
