Looking for life insurance?
Compare Life Insurance
Quotes and Rates!
Life Insurance Group > Life insurance news > Term life insurance » Term life insurance policies – get rewarded for staying alive...

Term life insurance policies – get rewarded for staying alive

Thursday, September 29th, 2011

Staying alive can get you rewards, especially if you have purchased term life insurance policies. There are a number of policyholders like David Sharpe, a resident of Los Angeles, who is shelling out $11,240 each year on his term life insurance premiums. However, he hopes to get all of his money back after the expiration of the policy after 30 years and he hopes to be alive until then. If he is still alive after the policy expires, he will get a total of $337,200 and this would be tax free. He is 34 years old and is confident that he will live way beyond the 30 years that is covered in his policy.

These numbers are growing and there are a number of policyholders at Mutual of Omaha, Federal Kemper, AIG American General, as well as other insurers who are looking forward to purchasing the extra-cost return-of-premium policies. This seems to be a great alternative when compared to the traditional term which is essentially a no-frills insurance policy that most people claim are the best way to purchase greater amount of protection at a low cost.

There is no investment component in the term coverage and it does not increase the cash value either. All it does is, ensure that the beneficiaries get the money after the death of the policyholder, while the policy is still in force. So, if you stay healthy, it will not necessarily be the same as collecting your homeowner’s insurance just because there was no damage to your home.

However, the protection offered by term life does not have the necessary appeal as far as buyers are concerned and it does not have the components that the insurance agents normally crave for. There is no guaranteed payoff whether you live or die. Doug Israel, who is a senior vice president at American General states that people don’t really like spending money on something that they think they may not use. The reason why traditional term insurance is so cheap is because of the fact that for most buyers the chances of availing benefits is really small, states Byron Udell, who is the chief executive of AccuQuote – the online insurance broker.

The return-of-premium policies cost 25% to 50% more each year when compared to regular term policies. There is an increase in cost and it is the extra amount that the insurer invests and that helps in providing the resources for the returned premiums.

OTHER TERM LIFE INSURANCE news

September 19th, 2014

Look for more options than simplicity of term life insurance

We all need life insurance and the one that we usually choose is term life. All pools and studies say that this is the number one life insurance sold in USA. The reasons behind this are – its simplicity (it provides basic coverage) and its price (cheapest form of life insurance). This may be news to some, but there are other insurance products that can offer more and are also adjustable and flexible to suit all our needs and changes throughout the life. Whole, universal and variable policies can provide more than just basics.

November 11th, 2013

Washington Firm to Offer Multiple Channels for Funding Long-Term Care

In a major change from the traditional approach, a major Washington firm is asking its carrier and captive agencies to increase payment options for their long-term care clients. This is not only for regular long-term care but is also set to encompass reverse mortgages, life insurance plans, annuities, riders related to long-term care, and critical illness cover. Even life settlements and pre-payment contract for services related to home care are to come under this client friendly payment option.

July 24th, 2013

Life Term Insurance – The Knight in Shining Armor

Henry A. Maslow presented the concept of the kinds of needs a person has. The needs included the basic needs (food, shelter, air), security needs (the need for insurance), and other needs like need for self esteem and self actualization. The reason why these needs are mentioned here is to show the importance of the security needs.

© 2019 LifeInsuranceGroup.com
Life Insurance Quotes for All Occasions. All Rights Reserved.