At the outset, I did not like the idea of nil residual cash value when the term of the life insurance ends. I wanted life long residual cash reward for my son even after the term of the life insurance expires the predetermined period.
On hearing this, the insurance agent looked at me as if he is looking at a creature. Immediately I realized that my proposal was ridiculous. The insurance sales man then went to great lengths to explain to me what a term life insurance is and how it differs from other insurance policies such as endowment policy which offers the benefits that I was thinking of for my son.
Term life insurance policy is only for a stipulated period of time and in fact that is what my son wanted but I volunteered unsolicited advice.
As my husband used to say even math teachers sometimes show a lack of acumen for figures.
2 comments:
There is such a thing now as Return of Premium term life insurance, where you get the benefit of level term, but you get back every penny you paid in premium over the life of the policy (usually always 30 years). The downside is that the monthly payments are 2-3 times higher than regular term, but you can still get much more protection for the money than whole or universal policies.
I ADDED YOU TO MY FAVOURITES...
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