President, Lane Independent Agency, Southern California
Cash Value is a quality associated with Whole Life Insurance. Term Life Insurance does not accumulate cash value. It provides only temporary life insurance for the period of the term. If you wish to build up cash value, you will need to obtain Whole Life Insurance. Whole Life Insurance keeps the same premium all of your life, while increasing the death benefit and accumulating cash value. This is the reason that Whole Life Insurance can actually end up saving money in the long run. If you want only temporary life insurance though, term life insurance can be cheaper at the start, until the premiums start increasing or you are left with no life insurance. Gary Lane, Registered Representative, New York Life, 949 797 2424. Thank you.
Licensed Life Agent, Life and Finance/ 50 States, New York
Term Life Life Insurance is only coverage from ten to 30 years depending on the policy. Term Life Insurance does not accumulate cash value for term life is only temporary protection pertaining to needs of the policyholder. Whole life is different and will accumulate cash value throughout the years. It is always advisable by me to have a unversal life policy with increasing death benefit, for, it less money and has more value.
Mark Taylor
347-650-9967
Term life insurance does not have cash value, but if you purchase ROP (Return of Premium) Term, you will get cash back at the end of the term. ROP Term pays back a percent of what you paid in if you would cancel your policy at some point (you usually have to keep the policy at least half of the term to get anything back). That amount increases, so that you would get a full refund of your premiums if you kept the policy until the term ended.
Term Life Insurance does not have cash value, but if you get what is called Return of Premium Term (ROP Term), it has a form of cash value. About midway through the term, depending on the policy, it will pay back some of the premiums paid in, IF you cancel the policy. By the end of the term, this type of policy will generally pay back all the premiums you paid in.
Some negatives: This cash is not available unless you surrender the policy. If you are table rated, it may be that only the premiums up to standard are paid back to you. The price is substantially higher than regular Term Life Insurance.
Some positives: If you bought regular Term Life and invested the extra you would have spent on ROP Term, it could take a return of over 5% every year on the difference, to earn what you would get back, tax free, by keeping ROP Term to the end. Unlike regular Term, longer terms often cost less than shorter terms, with ROP Term. Finally, getting back all your premiums if you are still alive at the end of the term is a great way to have "free" coverage and then get back enough for a final expense fund when the term ends.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Term life insurance does not build cash value - only permanent life insurance will (universal life and whole life).
Term insurance programs feature a simple format - you're buying coverage for a set number of years. If the insured dies during the term period, the policy pays out a death benefit. If the insured outlives the term period (and you decide not to pay the annual renewable term amount - this number will be substantially higher than the term premium so most people will never pay it), the coverage will end and you will need to secure a new policy if you want to continue having coverage in place.
It may be a good idea to have a life insurance portfolio that features some term coverage and some permanent coverage, depending on your specific needs.
I hope the information is helpful - please feel free to contact me for assistance with your program and if you have any other questions. Thanks very much.
That is a great question! There is a reason why things are cheap. You buy a cheap car, you spend a lot on repairs. You buy cheap clothes, they rip or shrink. Term insurance is cheap because it has very few perks, like a whole life policy would. Your term policy will have no cash value, and will end at a specific time. Because there is no management of your cash involved, and the odds are great that the company will collect from you for years and not have to pay you anything, those policies can be sold very cheaply. About the only way that you can stack the odds back in your favor and get money out of your policy would be to get a "return of premium" policy or rider. For a larger premium payment, this allows you to receive back most of what you had paid into the policy. If you have questions, feel free to drop me a line, okay? Thanks for asking!
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is mathematics. There is the probability of death over a certain period of time. If for some reason the company wants to offer a term policy with cash value that can be accomplished. Several policies are available that provide a sum of money upon the termination of a specified period of time. To provide these sums the premium is adjusted to make sure that money can accumulate in the policy.
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Mark Taylor
347-650-9967
Some negatives: This cash is not available unless you surrender the policy. If you are table rated, it may be that only the premiums up to standard are paid back to you. The price is substantially higher than regular Term Life Insurance.
Some positives: If you bought regular Term Life and invested the extra you would have spent on ROP Term, it could take a return of over 5% every year on the difference, to earn what you would get back, tax free, by keeping ROP Term to the end. Unlike regular Term, longer terms often cost less than shorter terms, with ROP Term. Finally, getting back all your premiums if you are still alive at the end of the term is a great way to have "free" coverage and then get back enough for a final expense fund when the term ends.
Term insurance programs feature a simple format - you're buying coverage for a set number of years. If the insured dies during the term period, the policy pays out a death benefit. If the insured outlives the term period (and you decide not to pay the annual renewable term amount - this number will be substantially higher than the term premium so most people will never pay it), the coverage will end and you will need to secure a new policy if you want to continue having coverage in place.
It may be a good idea to have a life insurance portfolio that features some term coverage and some permanent coverage, depending on your specific needs.
I hope the information is helpful - please feel free to contact me for assistance with your program and if you have any other questions. Thanks very much.