Broker Check

The Dirty Truth About Term Insurance

| December 01, 2023

Did you know that less than 2% of term insurance policies sold is collected by the beneficiaries as a Death Benefit? So, we are buying a product that will not be used as a settlement in a death claim.

A 60-year-old male can buy a $250,000 15-year term policy with a guaranteed premium of approximately $279.56 per month. But, at his age 76, the year 16 premium goes from $279.56 per month to $1,831 per month or $21,972 for the year. See chart below for the years 17 and 18 rates.

Year

Rate Per Month

Rate Per Year

16

$1,830.94

$21,972

17

$4,934.13

$59,209

18

$6,485.44

$77,825


It goes up every year exponentially!

This is a real case and we are trying to get this individual a Whole Life guaranteed death benefit of $250,000 for $1,912.70 a month or $22,952.40 annually and if approved, it will never go up and it will build cash value! Plus it is a permanent policy so they won't have to worry about not having coverage.

Please call us to discuss your term insurance. We are happy to provide a no cost analysis of your situation.