@frenchyriff It’s whole life for 15 years. With Dividend Option Term Rider. I’m fairly young. 31 years old and will my policy should be finished out by 45 years old. If I understand correctly, once I’ve reached 15 years my beneficiaries will be covered for life and I won’t have to pay any more premiums? What happens to my cash value?
@bayerski Is this a 15 pay whole life with a term rider? I literally have never heard of a policy like this. Term and whole life are two different things. Gunna need some more information before giving an answer.
@bayerski What company is this with? This sounds like 15 years of payments and then your obligation is complete. That's not the same as maturing, that's being paid off. The policy will continue to provide death benefit and have cash value growth.
Maturity happens at age 100 or 121 when the guaranteed cash value equals the original death benefit.
@bayerski Both Term and WL have maturity dates. With term it just ends. With WL it ends but it can mature with cash value equal to the death benefit or it can mature with zero dollars and end worthless like term. Read your contract and it will tell you.
@bayerski I am concerned that you are deeply confused about what you purchased. Term life insurance involves a relatively small premium being paid for a set period, after which nothing is paid to the insured (assuming they are still alive). Whole life insurance involves the payment of a fixed amount during the person's whole life, although sometimes premiums can be limited to a specific date (like age 65). Based on your follow-up comments, which reference a "dividend option term rider," you likely purchased a whole life insurance policy with a term rider, which means you have a whole-life policy with premiums due for many years, plus an additional "rider" (additional coverage/terms) that gives term insurance for 15 years, a mix of both traditional whole and term coverage. If that is correct, at the end of 15 years, your term rider will either lapse or its premiums will drastically increase, at which point you can do nothing and have large expenses against your policy, or you can cancel the rider. Either way, absent some specific action, you will likely have premiums due on the base whole life insurance policy for many years. That is fine if 1) you only need term coverage for your family for 15 years or so, after which the lower coverage of the base whole life policy is fine; or 2) if you are using a "paid-up additions rider" to fund the policy so that its death benefit will approach the term rider amount by year 15. If you are reading this and are confused about whether you are "max funding" with "paid-up additions" or are concerned that your need for life insurance won't disappear in 15 years, please comment or DM with questions.
