Ivon T. Hughes

Term Life Insurance Features

Term life insurance is considered to be pure insurance protection as it has no other value. This is in contrast to a permanent life insurance policy such as whole life which builds value over time.

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 doesn’t want to continue to pay? If he just stops paying on his term life policy, you can be sure the life insurance company won’t 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.

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 won’t 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, get in early and buy a term life policy to age 100.

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