Do You Have A Term Life Insurance Policy? Outlive It And Get Money Back
Ahh, life insurance.
It’s one of those “necessary evils” that you have a love-hate relationship with. You take out policies because you feel the need to protect your families in case something happens to you.
Many times, you opt for a term life insurance policy. With this type of policy, you pay a premium to the insurance provider who is expected to pay an agreed amount to the beneficiaries of the policy if you die during the period you pay the premium for (10,15, 20 years depending on your preference).
The thing about a term life insurance policy is that if you don’t die, the insurance policy is nullified and the company usually gives you the option to renew your policy usually at a higher premium rate.
So, what happens to all that money that you’ve been paying in premiums for all those years?
Nothing.
It’s gone.
If your families are to benefit from it, you’d have to be dead.
It’s at this point that we question whether it’s more beneficial to be dead or alive.
You’d think that if you don’t die at least you’d get back some of the money you would have been paying towards your premium, but no, this is how many life insurance companies win.
Choosing a life insurance company is very important. You can say that it’s as important as choosing who you marry — it’s “til death do you part”!
Before you decide to choose a term life insurance policy provider, make sure you get all the facts about:
- The price of their premiums
Premium rates for temporary life insurance policies are based on factors such as age, health, and life expectancy. So, if you’re young and in great health, your premium may not be as high as someone in opposite circumstances. You should aim to get the best coverage for the plan that you need.
- Their money-back policy
Although it’s common practice for temporary life insurance policies not to give back money to policyholders if they outlive their coverage period, it’s not impossible. You should ask the right questions to make sure such an option is available to you because, statistically speaking, most people outlive their term life policies.
Now is not the time to be hemorrhaging money. Times are hard and you need to find as many ways as possible to save and take care of your family.
If investing in a temporary life insurance policy that gives you the option to get your money back if you outlive it is one of those ways to save, by all means, take advantage of it!
