I recently did some research on the development of the
30
year term insurance policy over the years. What I learned
was quite interesting. Because of the tremendous interest in
term insurance the life insurance companies have greatly
improved this policy. Think about it, you graduate college, you
probably get married after you get a good job and accumulate
some money either in the bank or in some good investment of your
choice. You of course buy a home for your new family. You have a
need for some life insurance now to protect them in the event of
your premature death. You decide that a 30 year term insurance
policy would be good for you. Here is how it works.
The 30 Year Level Term Policy.
The 30 year term policy maintains a level death benefit
throughout the lifetime of the policy. The premiums also remain
level for many of the newer 30 year term insurance policies. It
used to be, and is some cases it still is so, that the premium
would be lower in the first five or so years then it would
increase. Many of the better companies now maintain a level
premium throughout the life of the policy. What is amazing is
that they keep the premiums so very low. That is good for the
insurance buyer and it seems to be good also for the companies
as they sell a lot of this type of insurance.
The 30 Year Return Of Premium Policy
If you are willing to pay a little more premium you can get a 30
year return of premium policy. The face amount of the policy
remains level throughout and so does the premium. The great
thing about this policy is that if you don't die within the 30
year period you get a return of all your premiums. Isn't that
just great? Just imagine you pay your life insurance premiums
for 30 years and if you died the insurance company would pay
your family the full face amount of the policy. If you don't die
they give you back your money. I think that is the best of both
worlds.
The Waiver Of Premium Rider
You can add the waiver of premium rider to either of your 30
year term insurance policies. If you should become disabled,
anytime after 6 months of disability, the life insurance company
will step in and pay the premiums for you even if it is for the
rest of your life.
The Accidental Death Benefit Rider
You can also add the accidental death benefit or double
indemnity rider. If you should die in an accident the company
will pay your family twice the face amount. If you had a policy
for $500,000 and you died in an accident the company would pay
$1,000,000 to your family.
I am a strong believer in the 20 year term policy but it seems
to me that with such great improvements the 30 year term
insurance policy is worth serious consideration.
About the author:
For more than 40 years Donald has been known for his extensive
knowledge of the life insurance business. He has represented
some of the largest and best life insurance companies in the
United States as well as Canada. His advice is invaluable.
Donald's website is:
http://www.lifeinsurancehub.net
