by braveangel » Thu Sep 03, 2009 02:35 pm
Hi, my question probably has been answered a million times in this forum but I want to ask again.
I am still confused about Term and Universal Life and I want to get a policy that is best for my family. My question is, if I get Term Life now, say, 100K for 10 years. Will my family/beneficiary gets the $100K if something happens to me at any time between 0-10 years after my policy is in effect?
In the same scenario, how much will my beneficiary gets for $100K Universal Life?
Thank you.
I am still confused about Term and Universal Life and I want to get a policy that is best for my family. My question is, if I get Term Life now, say, 100K for 10 years. Will my family/beneficiary gets the $100K if something happens to me at any time between 0-10 years after my policy is in effect?
In the same scenario, how much will my beneficiary gets for $100K Universal Life?
Thank you.
Posted: Fri Sep 04, 2009 01:33 am Post Subject:
If you have a term policy and you die while the policy is in force, you will get $100,000.
If you have a universal life policy and die while the policy is in force, you will get $100,000. It can also be structured so that you can get $100,000 + the cash surrender value.
If you only want insurance for 10 years, term is your better choice. If you think that you only need coverage for 10 years, you are probably incorrect.
Posted: Thu Sep 17, 2009 09:23 am Post Subject:
If you think that you only need coverage for 10 years, you are probably incorrect.
I guess that has to do something with the age of the insured.
Posted: Thu Sep 17, 2009 09:31 pm Post Subject:
It has very little to do with the age of the insured. It is more the financial reality that when someone thinks that their insurance need will go away at some finite point in the future, they are usually mistaken.
Posted: Fri Sep 18, 2009 07:06 pm Post Subject:
Yes, for the ten year questions unless you purchase decreasing term life insurance. The Universal policy could stay in affect much longer. You should request illustrations for the universal life insurance policy to see its guarantees.
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