atheist_1223
New member
@javelinda You are saying that she does not need insurance after the term expired because she will be child free
Good policy?
- Thread starter jas9108
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resjudicata
New member
@jas9108 That is standard on term policies. You're guaranteed your premium for 30 years, and after that it skyrockets. So most people don't pay their term past their guaranteed term. That's completely normal and not out of the ordinary.
The premium is not bad, however at your age, gender, standard risk class, and for $500k it does seem a bit high. You may want to shop it around if you're ha ING doubts. Nevertheless, not a bad policy if a level term and peace of mind is what you're looking for.
The premium is not bad, however at your age, gender, standard risk class, and for $500k it does seem a bit high. You may want to shop it around if you're ha ING doubts. Nevertheless, not a bad policy if a level term and peace of mind is what you're looking for.
@resjudicata Is that price worth it after 30 years? That seems like a lot for me to pay per year when I'm older and will hopefully be retired
kumarsumit
New member
@jas9108 When it comes to a Term Policy what you want is a policy that is “convertible”
That just means that you’ll have the option to convert it to a whole life policy at a certain point before the term expires
The advantage to converting it to a whole life policy is that the premiums will never increase
That just means that you’ll have the option to convert it to a whole life policy at a certain point before the term expires
The advantage to converting it to a whole life policy is that the premiums will never increase
@kumarsumit What's a whole life policy?
tikvahgirl
New member
jordanpaul
New member
@jas9108 Looks like a 30-year term. It's pretty standard for rates to jump up after the term expires. Basically, once you've had it 30 years, you can keep it, but you'll need to pay the higher prices to do so.
There's a website called Term4Sale that'll let you compare prices. Also, Choice Mutual is an app and website you can use to compare prices. Neither will market heavily to you.
Keep in mind some term policies include living benefits, like chronic illness riders and waiver of premium for disability. And most allow conversions prior to expiration. You don't HAVE to have these things, but some term policies include them and don't cost much.
There's a website called Term4Sale that'll let you compare prices. Also, Choice Mutual is an app and website you can use to compare prices. Neither will market heavily to you.
Keep in mind some term policies include living benefits, like chronic illness riders and waiver of premium for disability. And most allow conversions prior to expiration. You don't HAVE to have these things, but some term policies include them and don't cost much.
noelchristensen
New member
@jas9108 I’d love to help you decipher what’s going on here.
What you were pitched is a Standard 30 Year Term Product, with annual renewable capabilities at the end. This way, you are able to continue with the same death benefit/policy, with a rocket launch of jump in cost. This is something that every standard/new or even old Agent is taught, and if it is a Financial Planner/someone who is offering Financial Planning Term, then it would be a great decision for you AFTER the Term is complete. But, looking at the information you have given, as well as knowing and teaching Agents in the industry, I would say the product you were pitched is most likely a standard 30 Year Term policy.
With that said, I would encourage you to look into a Whole Life Policy such as a UL product, this is because rather than ending in 30 years, and you needing to either get another term or convert, you can secure your health rating and a fixed cost for a policy all the way until your 100-120 years old. But, if you were looking for a long term policy to carry you into 100-120, that you can use to supplement retirement income, or wanted to college plan for your children, or even set it up so you can put a down payment on a house, I would recommend looking into an IUL or Individual Universal Life policy.
This is something that I work with frequently, and can tie to someone’s goals in the future. The main pro to a policy like this is, you can set it up for anything… What I mean by that is if you want a car, house, boat, or even the nicest man cave possible, you can set up an IUL policy to fit and match whatever plan you like. This product also has other amazing things built into to, but just to give you the “cliff notes” of this product, an IUL is meant for Cash Value Accumulation product WITH a death benefit attached. This means, you are able to loan/take money out of your OWN POLICY, without affecting the death benefit that would go to your family…
If anyone has any questions, or if you are having trouble really getting a grasp on life insurance and how it not only benefit you but your family, please send me a message.
I often see too many family members asking me if the death benefit is all, or if there was more… this is heartbreaking not only because this family has lost someone, but I can only imagine the amount of people and the number of families who are without coverage and leave their family with little to nothing. If you are in a similar situation to the one I have stated, please don’t wait. Whether you reach out to me, and Agent you see on TV, or even someone you hear about on the radio, please secure your financial future for the next generation before the Cost of Insurance is too high because you waited. If you have any questions regarding anything policy wise, UL wise, or even IUL wise, please feel free to reply to me via this message, or DM me!
What you were pitched is a Standard 30 Year Term Product, with annual renewable capabilities at the end. This way, you are able to continue with the same death benefit/policy, with a rocket launch of jump in cost. This is something that every standard/new or even old Agent is taught, and if it is a Financial Planner/someone who is offering Financial Planning Term, then it would be a great decision for you AFTER the Term is complete. But, looking at the information you have given, as well as knowing and teaching Agents in the industry, I would say the product you were pitched is most likely a standard 30 Year Term policy.
With that said, I would encourage you to look into a Whole Life Policy such as a UL product, this is because rather than ending in 30 years, and you needing to either get another term or convert, you can secure your health rating and a fixed cost for a policy all the way until your 100-120 years old. But, if you were looking for a long term policy to carry you into 100-120, that you can use to supplement retirement income, or wanted to college plan for your children, or even set it up so you can put a down payment on a house, I would recommend looking into an IUL or Individual Universal Life policy.
This is something that I work with frequently, and can tie to someone’s goals in the future. The main pro to a policy like this is, you can set it up for anything… What I mean by that is if you want a car, house, boat, or even the nicest man cave possible, you can set up an IUL policy to fit and match whatever plan you like. This product also has other amazing things built into to, but just to give you the “cliff notes” of this product, an IUL is meant for Cash Value Accumulation product WITH a death benefit attached. This means, you are able to loan/take money out of your OWN POLICY, without affecting the death benefit that would go to your family…
If anyone has any questions, or if you are having trouble really getting a grasp on life insurance and how it not only benefit you but your family, please send me a message.
I often see too many family members asking me if the death benefit is all, or if there was more… this is heartbreaking not only because this family has lost someone, but I can only imagine the amount of people and the number of families who are without coverage and leave their family with little to nothing. If you are in a similar situation to the one I have stated, please don’t wait. Whether you reach out to me, and Agent you see on TV, or even someone you hear about on the radio, please secure your financial future for the next generation before the Cost of Insurance is too high because you waited. If you have any questions regarding anything policy wise, UL wise, or even IUL wise, please feel free to reply to me via this message, or DM me!
davidgarcia
New member
@noelchristensen That's false. The amount of loans or money withdrawn directly affects the death benefit. Any outstanding loans or withdrawals will be deducted from the total death benefit. To the point that if too much money is withdrawn or loans supercede the cash value the policy will lapse.
noelchristensen
New member
@davidgarcia Hey Erick,
Which part do you believe is false? We can both come to the conclusion that if you supersede the cash value of the policy by taking a loan out, it will lapse. But the direct correlation between your death benefit dropping because you take money out/withdraw money is false. If you were to look at (from my best knowledge) any illustration of an IUL, you will see when an insured takes money out of the policy, the cash value with drop, but death benefit will stay the same. This is due to what I referenced before, with an IUL you have TWO accounts or buckets (or however you want to refer to them) that do not touch. The only time that death benefit has a direct correlation to cash value, is when the cash value has grown to match the death benefit. In this case, your death benefit will rise with the policies cash value.
I am unsure of where you got this information, but I would be more than happy to discuss more IUL knowledge whenever!
P.S. In case you are referring to this, the only time death benefit WILL reduce because of a Loan/withdraw is if you were to die before paying it back. In this case, your beneficiary will receive a decreased death benefit after the original death benefit has paid back any outstanding balances.
Which part do you believe is false? We can both come to the conclusion that if you supersede the cash value of the policy by taking a loan out, it will lapse. But the direct correlation between your death benefit dropping because you take money out/withdraw money is false. If you were to look at (from my best knowledge) any illustration of an IUL, you will see when an insured takes money out of the policy, the cash value with drop, but death benefit will stay the same. This is due to what I referenced before, with an IUL you have TWO accounts or buckets (or however you want to refer to them) that do not touch. The only time that death benefit has a direct correlation to cash value, is when the cash value has grown to match the death benefit. In this case, your death benefit will rise with the policies cash value.
I am unsure of where you got this information, but I would be more than happy to discuss more IUL knowledge whenever!
P.S. In case you are referring to this, the only time death benefit WILL reduce because of a Loan/withdraw is if you were to die before paying it back. In this case, your beneficiary will receive a decreased death benefit after the original death benefit has paid back any outstanding balances.
shaimaaalmahdy
New member
@shaimaaalmahdy American family insurance