Why Term, and WHY NOT?
No one can argue that Life insurance is a good idea in most cases. However, which type of life insurance is the ongoing premise for disagreements among consumers and those agents or advisors who are not REALLY educated on life insurance. Although term life certainly is a good solution for some without a doubt, it is NOT the cure all, end all. Term life seems as if it’s the “cheapest” form of coverage. However, when carefully examined, it turns out to be the MOST EXPENSIVE, among all types of insurance. Term life is cheap today, but tomorrow and after your term (10, 20, 30 years) expires, the cost is astronomical. Also, according to a Penn state University Study, only 1 out of 4 Term Life Insurance policies are in force by the 3rd year. Ultimately, 99% of term life policy holders NEVER collect any money on their term policy.
Does the Cost of Term Life Insurance Change?
In Term life, the cost of life insurance ALWAYS goes up with your age. Life insurance is priced by a few factors. These factors are determined by careful studies, tables and current lifestyles that are studied by actuaries of the insurance companies. However, the most common factors are:
- Health Status
- Height & Weight
- Non-Smoker or Smoker
Other factors that determine the ACTUAL COST is the “term” that you buy. Meaning, a 10 year term is less expensive than a 20 year term and a 30 year term.
Renting Coverage vs. Owning Coverage
As mentioned above “term” insurance is similar to rental coverage. You see, renting a house is unquestionably cheaper than owning a house…at first. However, every year the cost of rent goes up. What makes rent go up? Inflation and cost of living expense make rents go up. On the flip side, owning a home can be costly upfront. But after 5-10 years the cost of owning a home starts to level out. Eventually, after 20-30 years owning a home becomes very inexpensive. In fact, no one really argues against that owning a home has far more benefits in the long run than throwing your money away on rent.
- “Something to show for it”
- “You can get ALL of your money back…PLUS interest”.
- Cheaper monthly payments
- Can move whenever you want
- No ownership
- “Zero” to show for it after 30 years
- Never see those rental payments again…put your monthly money in someone else’s pocket.
Well, term life insurance is EXACTLY the same way…just rental coverage.
When are you GOING TO DIE?
If you can tell EXACTLY when you will die, than you can chose what “term” you should rent. In other words, how do you know that you need 20 year’s worth of coverage? Why not 21; why not 22 years and 6 months? If you now you will die in 20 years than we would advise you to rent a 20 year term. As mentioned earlier, life insurance is a good idea because everyone at some point is going to die. But because we don’t know the time, then we should plan as IF we are not going to die within the allotted time given in these “terms”. This is why term life insurance is so cheap – because 99% you are not going to die within the term. The odds of a person dying within the “term”, or keeping their rental coverage are less than 1%. No wonder it’s so cheap. More importantly, this is why the insurance companies LOVE selling term insurance.
ANOTHER DANGER! Your Health, in the later years?
Unfortunately, none of us really know what the future holds for us. 99% of people who develop health ailments where never planning on becoming ill. However, reality is that 2 out of 5 Americans will be diagnosed with cancer by the age of 50. 3 out of 5 men will suffer a stroke or heart attack by the age 45. This causes a major problem when your “term” expires. YOU MAY NOT QUALIFY MEDICALLY FOR INSURANCE. Not only will it be too expensive but you will NOT be ACCEPTED for insurance, just when you might need it most.
Get Money Back Term Life Insurance instead
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We have helped thousands of successful individuals to create smart life insurance and risk management strategy. If this something you want for yourself then please call (877) 972-3262 or complete contact us form now.