Term life insurance question

[stong]

What is the name of your state? TX

Hi,

I am planning to get a 20 years term life from New York Life (I am in my mid 30s and recently became a father). Before calling them to schedule an appointment, I had been browsing through several other companies. One thing strikes me is that none of them ever mentioned if at the end of the 20 years period do I get the money I put in back.

My questions are, can I let the policy terminates after 20 years and would I get my premium back? Ois it really simply a short term insurance that unless I die do my wife and children would get the benefit? Do I really have to upgrade to permanent cash value insurance so it can be invested?

After LI, I have to plan for retirement.. so many things to do once you have a baby..

Thanks!

 

[AL HR]

Term life insurance is like medical or car insurance, you don't get anything back just because you didn't use it.

You want the other type of life insurance that does have an investment portion. Can't remember what it's called right now, but I'm sure one of the others will come along and let you know....

 

[anteater]

Ir sounds like you need to have a discussion with a few insurance agents in order to understand the pros and cons of term vs. permanent insurance and to clarify your goals.

If all you want is to insure your life for a certain period of time and are certain that you do not need life insurance past that period, then term is probably what you would be interested in. But, keep in mind how circumstances can change over 20 or 30 years. A combination of permanent and term polcies is an option. And you could look into term policies that are convertible to permanent.

There is a type of term that provides for a return of premium. Google that term and you will find plenty of information. However, return of premium policies will likely be 30 - 50% more expensive than straight term

 

[Betty]

Anteater is correct - there is a ROP (return of prem.) term policy some cos. issue. If you are alive at the end of the term, the prems. pd. will be returned to you. If you die before the end of the term, the full policy face amt. will be payable to the bene you name in the policy. The cost is more than regular term ins. but cheaper than whole life (permanent ins.) You need to contact an ins. agt. & he can help you decide on the best policy for you based on your needs & finances.

 

[stong]

Thanks everyone. I just scheduled an appointment so I will ask more detail information.