| By :
Marilyn Katz
Do you think you know everything there is to know about term life insurance in the US? Are you sure? Term policies are NOT all the same. There are some important features that you may have overlooked. This can affect the price and value of your policy in the future. Give me 5 minutes, and I'll bet I can tell you something you did not know. Not all term rates include a level rate guarantee. Company A may cost $35 a month. Company B may charge you $25 a month. The second insurer looks cheaper, true? Well, make sure that both insurers have a guaranteed rate for the entire term of the policy. Some are only guaranteed for 5 years. Your policy may last for 20 or 30 years. Some policies allow you to opt into a return of premium rider. For a small added premium, you get your money back when you survive the term. Why not get some money back at the end. This can be a nice feature. Let us say you pay $50 a month for a twenty year term policy. Multiply that fifty dollars out over 20 years. You have paid $12,000. Who wouldn't want to get some money back for the end? Life insurance companies are also not all the same. We compare the top ten insurers for premiums on the same individual. This was for a one hundred thousand dollar policy with a term of twenty years. Guess what? We found a three hundred dollar difference in premiums between the cheapest and most expensive. By taking the lower cost company, our applicant could save $6,000 in twenty years. That amount of money makes it worth it do do some comparson shopping. Some policies also add extra options, called riders, that may help you in the future. You probably want to buy a policy with an option to convert to whole life in the future. That way, at the end of your term, you can choose to extend coverage for your entire life. You do not have to provide any evidence that you are healthy either. If you should happen to suffer from a severe illness at some point, you can still be sure you can stay insured. Other useful riders are the ability to add critical illness and disability insurance to some term life policies. In fact, it is more likely that you will have a severe illness or be disabled than that you will actually die during your policy term. Your insurer has underwritten you, and they expect you to survive! You may choose to add these extra riders, at an extra cost, for more protection. Life insurance is not just for young families either. We have seen some companies, these days, that are willing to extend policies up to age 75. Past age 75, you probably need to buy whole life. Did you learn anything new? We hope you did, and that our tips can help you save money and time when you look for a policy.
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