when the term is up on term life insurance, what happens to the money you paid? do you get it back?
im in my early twenties and im looking for life insurance outside of my job. i want to know if you sign up for term life insurance and the term is up what happens with the money you've paid? or is it just better to sign up for whole life insurance?- Term vs Permanent is definitely a hotly debated subject. For term insurance, the money you paid is all lost because the premium is a hundred percent cost. Also if you decide to continue the insurance AFTER the end of the term do not be surprised if the premium will be 10x more expensive after a 20 year term policy Since you are so young, it is definitely a good idea to lock - in the low costs before you are older and it will be much more expensive. However it is more important to have the coverage you NEED. If costs are out of you budget get term insurance until you are able to afford whole life. You can ask an insurance professional, or financial advisor if they can recommend a CONVERTIBLE term policy where you can slowly convert term to whole life. Usually after 17 - 20 years of paying whole life premiums the policy can usually pay for itself. literally! and you will not have to pay any further premiums. and you will have the coverage for the REST OF YOUR LIFE. Personally, I'm not a fan of "Buy Term, invest the difference" If you feel that AGGRESSIVE towards your life insurance, you can look into a variable universal life insurance policy. It is also a "permanent" life insurance policy that invests with the market. Once again speak to a professional or two in person. Let them know your situation. If they give you options listen to them. If they ONLY say buy term. of if they ONLY say buy whole life. walk out the room and find someone else
- whole life is bad, this is how it works: lets say you pay a monthly premium of $100, 65 goes to cost of insurance and 35 goes toward cash value. you are over paying, that's how a cash value account is made. the account doesn't have any value until 3 years of premium payments, this means you over pay for 3 years with nothing to show. so you lost $1260, which you could have used to pay your premium for over a year and a half. Contrary to what you may have been told, you will never get your cash value money. you can borrow it, but you have to pay it back with interest. the only way to get your cash value is if you live to be 100, otherwise the insurance company keeps it and invests it for itself in the global economy. 90% of experts say to buy term. talk to someone from Primerica, they can set you straight
- The money you paid up in term life does not come back to you. Whole life does accumulate cash value, but it is way more expensive than term life. I don't know why you are looking for life insurance other than what is offered at your job at early twenties. I suggest looking for different way to invest. At your age, extra life insurance should be bought if you are trying to give extra protection to let's say your children
- Term insurance is strictly insurance. If you are looking to cover certain liabilities that will be paid off in a set number of years, then term life insurance is usually the answer. If you are looking for permanent coverage, then whole or universal life insurance is usually the answer. This answer may sound fuzzy, but in order to give professional suggestions the best thing is to meet with an advisor that can go over your current financial situation to determine exactly how much coverage you need and what type is best. Here is directory of local advisors: insuremylife.org Also here is more info on how Permanent life insurance works: findlocalinsurance.com / permlife.html
- Term you basically pay on forever. It doesn't build up any kind of equity. If you quit paying for it, the money is just gone. At your age, a whole life policy would probably be a good option. Talk to friends and family and find a insurance agent you can trust. They should be able to help you decide which is truly best for your situation
- buy term and invest the difference. a whole life policy is typically 4 - 5 times more expensive than term. if you really want money back, check out return of premium term or universal life with no lapse guarantees. if no one depends on you or your income you probably do not even need coverage
- Term Insurance means you pay to cover yourself in case of death, your family will be provided for. Premiums paid are not returned. Now days you may purchase Term life Insurance products with A premium protection rider which will refund some or all of premiums paid at the end of the term. I suggest you speak with a Financial planner or an investment professional there may be other products out there that would benefit you in the same ways but funds are more readily accessible to you
- If someone is selling you Life Insurance, do not touch them. Insurance is based on the possibility of something happening such as car insurance is based on the possibility of you crashing. Since you are going to die you need Life urance
- no you don't get it back. However, they do have a Return of Premium term now. Another words, if you don't die, you get all of the money that you put in back. It's kinda like a forced saving account. the only differnce is, you get life coverage during the period. It good and affordable. There are a bunch of websites out there. I used newenglandquotes.com and they will give you an instant quote. take care
Knowledge Base
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